Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

The Audit’s Done, and We Need to Reclassify – Now What?

By Samantha Abeysekera on March 7, 2014
Email this postTweet this postLike this postShare this post on LinkedIn

Let’s assume you’ve done an internal audit, or one required by the Department of Labor, and found – as so many companies do – that certain titles/positions require reclassification from exempt to non-exempt under the Fair Labor Standards Act and state law.  What are the next steps?

The task of making reclassification a reality requires consideration of many factors.  For example, will the company pay backpay for some or all of the period during which employees were misclassified?  If so, will current and former employees be paid, or just current employees?  How far back should the company go in calculating backpay?  How many hours – in the likely absence of time records – should the company pay for?  How is the amount of backpay calculated?

Apart from the issue of repayment, companies also need to think about obtaining acknowledgements from employees to limit liability, “messaging” the reclassification to employees, setting new pay rates, and training supervisors to monitor and, if necessary, prevent off the clock work by those who are now non-exempt.

During our presentation at the 19th Annual Akerman Labor & Employment Law Seminar, we will discuss how to handle soup-to-nuts reclassification in a practical way, including best practices for limiting legal claims resulting from the reclassification.  We hope you will join us on April 4th!

Photo of Samantha Abeysekera Samantha Abeysekera

Samantha Abeysekera advises and litigates on behalf of management in a diverse array of industries, including financial services, market research, real estate, aviation, and technology start-ups. Both her litigation and advice-and-counseling work focuses on employment discrimination, harassment, restrictive covenants, and employment/separation agreements, as…

Samantha Abeysekera advises and litigates on behalf of management in a diverse array of industries, including financial services, market research, real estate, aviation, and technology start-ups. Both her litigation and advice-and-counseling work focuses on employment discrimination, harassment, restrictive covenants, and employment/separation agreements, as well as wage and hour matters involving exempt/non-exempt status, the calculation of hours worked, overtime pay, and other issues under the Fair Labor Standards Act and state wage and hour laws.

Read more about Samantha AbeysekeraEmail
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    HR Defense
  • Organization:
    Akerman LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo