Is an Employer Required to Classify Employees as Exempt?

In FLSA Opinion Letter 2026-1, the Department of Labor (DOL) addressed whether an employer may reclassify an exempt worker from salaried exempt to hourly non-exempt, even though this employee met the elements to be exempt, and the employee’s duties did not change much.  The DOL concluded that employers are not required to classify employees as exempt, even when all exemption criteria are met, provided they comply with the minimum wage and overtime requirements.  Such steps may make it more difficult to reclassify the employee as exempt and could risk discrimination issues if the employer treated other employees in the same position differently.  

This article is part of our March 2026 Newsletter. 

View the newsletter online

Download the newsletter as a PDF