Sometimes a salaried exempt employee reduces their workload to part-time status. Does this change mean that the employer must reclassify that worker as non-exempt under the Fair Labor Standards Act? In some cases, the change to part-time work requires reclassification, while in other cases the employee will still qualify as exempt.
The FLSA’s executive, professional, and administrative exemptions do not require full-time work to qualify. However, the employee must receive the full minimum salary (currently $35,568 annually), which cannot be prorated for part-time work. If the employee meets this salary requirement, they still qualify for the exemption assuming that the change in hours does not change their duties to the point where they no longer meet the standard for the claimed exemption.
If the employee converting to part-time status fails to meet the salary or duties test for the specific exemption, they would need to be reclassified as non-exempt, even if they continue to be paid on a salaried basis. While it may be unlikely that a part-time employee would work overtime, the employer is required to maintain accurate records of hours worked, and to pay overtime in any week with more than 40 hours worked.
In addition to the FLSA exemption question, converting workers to part-time status may impact their ability to participate in certain employee benefit plans. Employers should fully disclose these issues before an employee makes the decision to reduce their working hours.
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