Job Reclassification Lawsuits: Exempt to Non-Exempt Employees
Last Updated on September 24, 2021
At A Glance
- This Alert Affects:
- Employees who were reclassified from exempt to non-exempt. These employees may or may not have received a letter about this reclassification.
- What Does It Mean to Be Exempt or Non-Exempt?
- Exempt employees aren't entitled to overtime while non-exempt employees are.
- Why Was I Reclassified?
- A number of companies are reportedly reclassifying employees as "non-exempt" after discovering they were illegally depriving these workers of overtime pay. Many of these companies, however, are failing to pay reclassified employees for back overtime wages.
- What You Can Do:
- If you've been reclassified and didn't receive back wages for the overtime you worked during the past few years, get in touch with us today by filling out the form on this page. It's possible that you may be able to make a claim for your unpaid overtime.
- Can I Get Fired?
- It's illegal for your employer to take any retaliatory action against you for exercising your legal rights.
If you’ve been misclassified from exempt to non-exempt, it’s possible that you may have been cheated out of overtime wages for the past few years.
Thousands of employees are receiving letters or otherwise being notified that they’re being reclassified from exempt to non-exempt, meaning they can now earn overtime. Nothing with these workers’ jobs have changed, however, and many of these reclassifications have been the result of the employer finding out that it had been improperly misclassifying employees as exempt, or ineligible, for overtime wages. Even though these employees are getting overtime pay moving forward, many are being left uncompensated for the years of overtime they worked prior to the reclassification.
Exempt and Non-Exempt Employees: What Does It All Mean?
It’s as simple as this: employees who are exempt are not entitled to overtime wages, while non-exempt employees are entitled to overtime. It’s not always easy, however, to distinguish whether an employee is an exempt or non-exempt employee under federal wage and hour laws.
Some companies are simply unaware of the regulations that apply to their businesses and have mistakenly classified their employees as “exempt” – while others have done it to save the money it would need to pay out to its workers for overtime.
Why Would a Company Reclassify a Job Position?
It is believed that the number of reclassifications taking place are the result of two things:
The Department of Labor (DOL) is cracking down on employers that are either intentionally or unknowingly misclassifying their employees as exempt
Hundreds of lawsuits are being filed on behalf of employees who they weren’t properly classified – and settling for millions of dollars in back pay
As a result, companies are either getting scared of facing lawsuits or are developing a better understanding of what it means to be exempt and non-exempt and reclassifying thousands of workers to avoid any problems.
Reclassification Letters: Why They May Not Be Enough
When a company discovers – either through a Department of Labor investigation or otherwise – that it has misclassified employees, it may send out reclassification letters to the affected workers. These letters may inform the workers that while they were once an exempt employee, they are now a non-exempt employee who will receive overtime wages going forward.
Unfortunately, some of these companies are failing to pay these workers for back overtime wages. As a result, even though the reclassified employees are now earning overtime, they are left uncompensated for all the extra hours they previously worked when they were misclassified.
Reclassified? You May Be Able to Seek Back Pay
If you’ve been notified, either through a letter or otherwise, about an overtime exemption change, get in touch with us today by filling out the form on this page. After you contact us, one of the attorneys we work with may call or e-mail you to explain how you could make a claim for back pay and answer any questions you may have. There’s no cost to talk to an attorney and learn more about your rights and you’re never obligated to take legal action after contacting us.
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