How does job reclassification impact salary and benefits?

Companies that reclassify employees also usually adjust their compensation. They might increase the salary or lower the pay based on the role's market value and internal pay structure. Benefits can also change if the position has different requirements for health insurance or other fringe benefits.

Why might an employer choose to reclassify an employee's job?

Employers reclassify positions for several reasons, including changes in job duties or organizational restructuring. They might reclassify jobs to abide by wage and hour laws. Some companies adjust roles to remain competitive when market conditions change. When employees perform duties outside their classification level, businesses may also need to reclassify their jobs.

How can job reclassification affect an employee's eligibility for overtime pay?

Job reclassification does have the potential to affect overtime pay in certain situations. One example is when employees move from exempt to non-exempt employee status. It makes them eligible for overtime pay when they're working more than 40 hours per week. Reclassification to exempt status eliminates overtime pay regardless of hours worked.