What are the notice requirements when moving someone from exempt to nonexempt? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

What are the notice requirements when moving someone from exempt to nonexempt?

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in Leaders & Managers,Management Training

Q. We’re planning to demote an employee for performance reasons. He’d move from a supervisory job (salaried/exempt) to an hourly job, so we would cut his pay by about $10,000 a year. What kind of notice must we give him regarding the pay cut and exemption status?

A. You should provide notice before the change goes into effect; thus the notice would be prospective. You should explain to him the performance reasons that led to the decision, and the expectations you have for him in the new position.

You also should advise him that he should not work overtime unless authorized and explain that, if he does work overtime, he will be entitled to time and a half for hours worked over 40 in a workweek. 

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