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Key Factors to Consider in Return-to-Exempt Status Decisions

CATEGORY: Authored Articles
CLIENT TYPE: Public Employers
PUBLICATION: SHRM
DATE: Jan 15, 2025

Recently published in SHRM, LCW Partner Lisa S. Charbonneau provides insights into critical considerations for employers evaluating whether to revert employees to exempt status following the vacating of the 2024 DOL overtime rule. Charbonneau highlights the challenges the rule would have posed, particularly for smaller markets, by significantly increasing salary thresholds for white-collar exemptions.

The article examines factors such as the cost of reclassification, employee morale, and competitive positioning in the labor market. Employers are advised to carefully weigh the tangible and intangible impacts of reclassification decisions, including how these changes could affect employee retention and recruitment. Charbonneau underscores the importance of thoughtful planning and clear communication when implementing status changes to minimize disruption and ensure alignment with organizational goals.

To access the full article, please click the following link: https://www.shrm.org/topics-tools/employment-law-compliance/key-factors-to-consider-return-to-exempt-status-decisions

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