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24 FEDERAL STREET, 12th FLOOR / BOSTON, MA 02110 / (617) 348-4300 / WWW.HRWLAWYERS.COM

Sample Memorandum to Employees Regarding Impact of Changes to FLSA Regulations Concerning Exempt Status1

Catherine E. Reuben

Hirsch Roberts Weinstein LLP (617) 348-4316

www.hrwlawyers.com

As you may have heard in the news, the Department of Labor has issued new regulations concerning the Fair Labor Standards Act which will go into effect in December of this year. Under those new regulations, certain of the employees who formally were not considered eligible for overtime ("exempt" employees) now will become eligible for overtime.

As a result of these changes in the law, we are reviewing positions here at [NAME OF COMPANY] and making determinations as to whether any of our positions need to be reclassified.

If you are currently in a position that is overtime eligible ("non-exempt"), nothing will change for you. If you are currently in a position that is not overtime eligible ("exempt") you will be informed in writing if that status will be changing. In that communication, will provide information about how the change will impact you. In most cases, employees should not see any change in their bi-weekly take-home pay. To the contrary, they may have an opportunity to earn more money more due to the availability of overtime pay.

One thing we want to make clear: We value all of our employees. Whether an employee is classified as exempt or non-exempt is no reflection on their level within the organization, their contribution or the professional nature of their position. The classification is based purely on legal requirements.

If you have any questions, please do not hesitate to contact human resources. Thank you for your service to [NAME OF COMPANY].

1 This sample memorandum is provided for educational purposes only and should not be relied on as legal advice. Consult with counsel to appropriately tailor this memorandum for your business.