FLSA Status Change Upon Reclassification Clause Samples
The FLSA Status Change Upon Reclassification clause defines how an employee’s classification under the Fair Labor Standards Act (FLSA) is updated if their job duties or position are re-evaluated. In practice, this means that if an employee is reclassified from non-exempt to exempt status, or vice versa, their eligibility for overtime pay and other wage protections will change accordingly from the effective date of the reclassification. This clause ensures that both the employer and employee are clear about the implications of a change in job status, helping to maintain compliance with wage and hour laws and prevent disputes over pay entitlements.
FLSA Status Change Upon Reclassification. 1. When an employee’s position is reclassified retroactively into a classification with a different FLSA status, the change in FLSA status shall be prospective only, even though the change in classification and resulting pay may be applied retroactively.
2. When an employee’s position is reclassified from an FLSA-exempt classification to an FLSA non-exempt classification, the employee will be paid overtime pay prospectively.
3. When an employee’s position is reclassified from a FLSA non-exempt classification to a FLSA-exempt classification, the employee shall receive a cash out of all accrued compensatory time and if reclassified to an executive leave eligible position, will be eligible to receive executive leave.