WorldatWork, the Total Rewards Association
Password:  Change  |  Forgot  |  Help   
Email   Print


Compensation  >>   Reclassifying an exempt position to Non-Exempt Search Discussion Posts
Discussions Help
Sort By: Oldest posts first Most recent posts first

Reclassifying an exempt position to Non-Exempt  
Posted: 01/23/2009 02:59pm   227 Views

I was wondering if I could take the temperature of what practices organizations use in regards to compensating an employee for "Lost" overtime when a person is reclassified from exempt to non-exempt. Any responses are appreciated!


Reclassifying an exempt position to Non-Exempt  
Posted: 01/23/2009 03:05pm  

Am I reading your post correctly?  What OT is lost by reclassifying from exempt to non-exempt?


Reclassifying an exempt position to Non-Exempt  
Posted: 01/23/2009 03:25pm  

Typically, we look at 2 years of back OT pay  - similar to how the DOL FLSA guidelines frame it for unintentional misclassification.


Reclassifying an exempt position to Non-Exempt  
Posted: 01/23/2009 04:11pm  

Depends on whether the job was properly classified as exempt under the FLSA and you merely recently decided to voluntarily pay it overtime which then pretty much automatically makes it non-exempt by law. 

If it was truly exempt (like a department head or VP) and you just opted to offer overtime, you owe nothing.  If was truly always non-exempt per FLSA rules and you just messed up by improperly denying it OT and mistakenly paying it as an exempt, you owe the statuatory amount per the regulations. 

Any situation in the middle between those two might have a different answer, like if was:

  • an exempt foreman you want to offer straight time OT;
  • or an exempt degreed professional technologist browned at not getting the regular overtime of her non-exempt non-degreed technicians co-workers sharing the same after-hours assignments. 


Reclassifying an exempt position to Non-Exempt  
Posted: 01/26/2009 02:58pm  

We had some IT Helpdesk employees misclassified due to an old practice of using very general (IT) job titles.  (It was a team restructuring and an Oct-06 DOL opinion letter that brought the situation to light.)  After consulting with in-house counsel we also chose the route of a 2 year look back period.  Since these employees already kept track of their time for project reporting purposes we were able to reconstruct what had happened in the prior two years.  This was a very lucky coincidence, but still a lot of work to assemble.  Once we came up with the overtime numbers we had the employees agree and put a copy of the results in their HR files.


Reclassifying an exempt position to Non-Exempt  
Posted: 01/31/2009 09:31pm  

I've been in two organizations in the last few years where we went through exemption status reclassifications and handled it almost identically to how Windsor Lewis described.  In one situation, we too had the hours already being tracked for the IT organizations enterprise project tracking system, so it was relatively easy.  In other instance where no hours were being tracked, it was based on employees being asked to provide estimate.


Reclassifying an exempt position to Non-Exempt  
Posted: 02/02/2009 07:28am  
Did you pay 1.5 times the hourly rate for those hours or just 0.5 times the hourly rate (On the basis that they were already paid their regular pay for the time worked in their exempt salary)?

Top Contributors


Copyright  |  Privacy Policy  |  Site Map  |  Advertise with Us  |  Community Terms and Conditions