Informing Employees of a Change in Exemption Status

Guide
Communication
Employee & Labor Relations
Compensation Planning

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As human resources professionals, we sometimes have difficult conversations. What we must do, want to do, and should do can conflict with one another, and balancing these competing issues may be difficult.

This concept certainly holds true when meeting with an employee to discuss changing their Fair Labor Standards Act (FLSA) status from exempt to nonexempt. Employees often:

  • View this change as a loss of workplace status or demotion.
  • Fear their employer no longer sees them as a professional-level employee.
  • Experience a change in benefits or loss in other incentives.
  • View “punching a time clock” negatively.

These thoughts and fears can make for a difficult conversation. Consider these best practices and helpful tips to keep the conversation on track for the best possible outcome.

Mentor Male with Female