The new overtime rule that is set to begin December 1st: Are you considering reclassifying some of your employees to non-exempt and paying them overtime, while giving a few others a raise to keep them as exempt? Is this okay?
Yes, all employees may be classified as non-exempt. Being classified as non-exempt is considered a benefit to the employee, while being classified as exempt is considered a benefit to the employer. The Department of Labor is fine with any and all employees being classified as non-exempt.
That said, when making classification changes, keep in mind that similarly-situated employees should generally be classified the same way. It could be seen as discriminatory if ‘Jr. Accountant John’ is classified as salaried exempt, giving him more flexibility and a pay increase, while ‘Jr. Accountant Maria’ is reclassified as hourly non-exempt. If you’re going to split up a group of employees like this, you’ll want to make sure that you have legitimate business reasons for your decision, and that you’ve documented those reasons in your employees’ files.
Should you have any questions on this or any other HR topic, please contact CyQuest today!