Change Exempt Status To Non-Exempt Status Without Violating The FLSA — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Change Exempt Status To Non-Exempt Status Without Violating The FLSA

Get PDF file

by on
in Office Management

Given the Department of Labor's (DOL) increased focus on enforcing wage and hour laws (the agency announced in November that it has increased its staff by more than one third by hiring 250 new wage and hour investigators), and the high price of losing a wage and hour lawsuit (in one case, a company agreed to pay $517,000 to 60 misclassified workers), auditing employees' exempt classifications is a smart move.


But what happens if you discover that an employee has been misclassified? What steps should you take to correct their status without sparking a Fair Labor Standards Act (FLSA) claim? (Note: State laws may vary.) For answers, we went to Morris Jennings, a consultant in Austin, TX (, who is a former DOL Wage and Hour Division investigator. He warned that "the resolution of possible misclassification issues is complicated, and employers should not attempt this without expert guidance. It is n...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Related Articles...

{ 2 comments… read them below or add one }

Nejha Mason April 7, 2015 at 4:28 am

Wonder if you feel the reason the employer reclassified you is so that you can no longer effectively do your job and to keep from paying you a yearly bonus of $8,000. You know from doing the job for 3 years that it takes more than 40 hours a week to do it effectively but you are restricted to 40 hours…seems like a set up for failure so that they can get rid of you for cause. As an hourly employee, you can no longer work at home so any work has to be done in the office. Further handcuffing you from being able to serve your internal and external customers. Are there any laws protecting this?


Liz Hopkins August 6, 2013 at 10:43 am



Leave a Comment

Previous post:

Next post: