When an employee or employer’s needs change, often that means a change in schedule. But how does on transition an employee from full-time exempt employee to part-time employee? Here are our quick notes (and a video explanation from an HR professional!)
If you’re going to transition an employee from full-time status to part-time and their hours will not extend beyond part-time, then you can decrease their pay. Before changing their pay make sure they will still meet the minimum federal salary requirement of $455 per week.
Some states have different minimum requirements in addition to federal regulations. Ensure your company is compliant with local standards before making any changes. If part-time pay falls below the federal requirement, employers must move the worker to a non-exempt status.
Don’t lower salary or change employment status more than once or twice for the same employee. The Department of Labor (DOL) will monitor wage and classification changes.
If you’re constantly moving an employee back and forth from full-time to part-time status to decrease their pay, your organization might be flagged. The DOL may see this pattern as a way for the company to avoid paying overtime or classifying employees as exempt, which would allow the employee to work as many hours as needed and be paid for the total hours worked.
Before moving an employee from full-time to part-time status be confident that the change will be a permanent long-term move to avoid federal complications or flagging the DOL for suspicious activity.