Exemption status (eligibility for overtime pay) changes are sometimes made when roles are audited, job descriptions are updated, and/or local, state, or federal Fair Labor Standards Act (FLSA) laws change. Employers should issue internal employment confirmation letters (a letter similar to the initial offer of employment, explaining the terms and conditions for employment) to employees when their exemption status changes. Additionally, some states have state-required notices that must be issued. Often, a change in exemption status impacts other conditions of employment, such as benefits and paid time off eligibility, which should be clarified in the internal employment confirmation letter. The following optional letter format and paragraphs may be useful in drafting internal change employment confirmation letters. Because FLSA classification is frequently subject to wage and hour claims, we recommend that you consult with legal counsel on these matters.
