Question of the Week

How do we handle open enrollment for an employee who’s out on leave?

You should ensure the employee on leave get the same chances to review their enrollment options and make selections as everyone else. Here are our recommended steps:

As during any open enrollment period, the key is to communicate with your employee so they know what to expect, what your deadlines are, and what happens when deadlines are missed. When in doubt, confirm specifics with your carrier or broker and follow your plan documents.

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What should we include in a bereavement leave policy?

Bereavement leave typically allows employees to take time off to grieve, make arrangements, or attend services following the death of a loved one. If you offer bereavement leave, we recommend having a policy that sets clear expectations and processes for requesting, approving, and using leave.

Here are some things to include:

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Do you have any tips for managing remote employees?

Managing remote employees can pose certain challenges, but most can be overcome by making sure you’re focusing on the right things. Here are some of the practices we recommend:

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An employee recently resigned and hasn’t yet returned some company equipment. Can we hold on to their final paycheck until they return everything?

No, you can’t hold or delay an employee’s final paycheck while waiting for company equipment to be returned. Federal law requires that employees receive their final paycheck by their next regular payday, while almost half of the states require that they be paid within a shorter timeframe. In both cases, the obligation to pay in a timely fashion exists regardless of whether the employee has failed to return company property.

Instead, we recommend making the return as simple as possible. You could arrange a time for the employee to drop the equipment off at your office, mail them a pre-paid shipping label and box to return the items, or offer to have a courier pick up the equipment. We recommend sending an email or letter outlining these options, setting a clear return-by date, and explaining that you may consider legal action if the company property isn’t returned. Here is a sample letter you can use.

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We have an employee out due to a work-related injury. Do we still need to send them Family and Medical Leave Act (FMLA) paperwork if they’re already on workers’ compensation?

It depends. The FMLA and workers’ compensation serve different purposes. The FMLA provides unpaid job-protected leave, while workers’ compensation provides medical coverage and wage replacement when an employee is out due to a workplace injury.

If the injury qualifies as a serious health condition under the FMLA, you’re a covered employer, and the employee is eligible for FMLA leave, you should provide them with FMLA paperwork—even if they’re receiving workers’ compensation.

You should also review any applicable state or local laws that may offer additional protections or requirements.

Watch our short video to learn more about FMLA paperwork.

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If we send employees home early because business is slow, do we have to pay them?

Whether they need to be paid depends on the employee’s classification under the Fair Labor Standards Act. Exempt employees will need to receive their full day’s salary, and nonexempt employees will need to be paid for the hours they actually worked.

Be aware that several states require reporting time pay, sometimes known as show-up pay. These laws typically require employers to pay a certain amount to employees simply for showing up to work. They’re meant to prevent unexpected wage loss and discourage employers from overscheduling.

You can check your state’s pay requirements on the platform.

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An employee let us know they changed their name. What documentation do we need, and what changes do we need to make?

When an employee informs you that they’ve changed their name, it’s important to handle the update properly—both to show respect for the employee and to stay compliant with your recordkeeping obligations. Below are steps you’ll want to take to get their information updated in all the key places. Keep in mind that some name change documentation may take a while for the employee to receive, but you can still recognize their new name in your communications systems without official documentation.

You can find a sample change of information form on the platform. Employees can use this to alert you to a name change or other update to their personal information.

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One of our employees has taken on a second job, and I’m concerned the additional work might hurt their performance or interfere with their work. Should we keep closer tabs on them?

If you haven’t had previous issues with this employee’s performance, don’t worry about them taking a second job unless or until you need to. Side jobs are common, and many people manage them just fine. You can certainly reiterate your performance expectations, whether that’s completing assignments on time, responding promptly to messages, or meeting productivity goals.

If you do start to notice a decline in their performance—such as missed deadlines, slower response times, or lower quality—address the issue with the employee at that time. A simple warning may be enough to get their performance back on track. If they don’t get back on track, follow your company’s disciplinary process or consider a performance improvement plan.

You might also consider whether your organization can offer growth opportunities that align with the employee’s professional goals. Many people take a side job to broaden their work experience or expand their network, not just for extra pay. If you can meet some of those needs internally, they may not feel the need to look elsewhere.

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An employee requested to work remotely as an accommodation so they can be home with a child who is disabled. Do we have to provide this accommodation under the ADA?

No, the Americans with Disabilities Act (ADA) doesn’t require that employers provide accommodations to employees because they have a family member who is disabled. You’re only required to provide an accommodation under the ADA when the employee themselves has a qualifying disability and if doing so wouldn’t cause an undue hardship (i.e., something that would require significant difficulty or expense).

That said, if you’ve allowed other employees who do similar jobs to work remotely, you should consider doing so in this case. The ADA prohibits discrimination against an employee on the basis of being associated with someone (such as a family member) who is disabled. So, while there’s no hard and fast obligation to accommodate an employee because of their family member’s disability, it’s possible that the employee could still claim associational disability discrimination if the employer denies their accommodation request while granting the same sort of request for others.

You can reduce the likelihood of discrimination claims by treating similarly situated employees consistently and communicating the legitimate business reasons for denying a request.

You can learn more about employer responsibilities under the ADA on the platform.

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One of our employees refuses to sign the employee handbook. What should we do?

Start with a conversation to understand the employee’s concerns. It’s possible they believe their signing the handbook means they agree with everything in it. Make sure to explain that their signature only acknowledges that they’ve read and understood it.

If that doesn’t resolve the issue, make it clear that failure to sign the handbook doesn’t mean they’re exempt from the policies and procedures within it. Explain that all employees are expected to adhere to the same rules, regardless of whether they’ve signed the handbook.

Document that the employee refused to sign the handbook and that you made it clear that they’re still expected follow your organization’s policies. You can do this directly on their handbook acknowledgment form.

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Can we tell employees not to talk about their pay with each other?

Generally, no. The National Labor Relations Act (NLRA) grants all non-supervisory employees (not just those in unions) the right to organize and engage in “concerted activity” for the purpose of mutual aid or protection. Concerted means “in concert,” meaning more than one employee is involved. Activities for mutual aid and protection could include discussions about wages, benefits, treatment from managers, safety issues, and just about anything else that two or more employees might have a stake in. As a result, the protections provided by the NLRA are broad. Here are a few examples of protected activity:

While the NLRA doesn’t protect supervisory employees in this way, employers should be careful about who they classify as supervisory. Only those who have real authority will be exempt from the NLRA’s protections—an assistant manager or shift manager, for example, would in many cases not qualify as supervisory.

Note that a number of states have enacted pay equity or pay transparency laws that protect all employees’ ability to discuss their wages—even those in the C-suite. Under these laws, you wouldn’t be able to enforce wage confidentiality policies, even for supervisors.

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What is a 30-60-90 day review?

The 30-60-90 day review is a structured check-in process designed to support new employees during their first 90 days. Led by the employee’s manager, this review sets clear performance expectations, monitors progress, and addresses any issues at the outset. For employees, it helps ensure a smooth transition. For managers, it provides a clear structure for setting their employees up for success.

The review typically has three stages, which may look something like this:

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One of our employees is returning from FMLA next month. Is it okay for their manager to contact them before they return?

Yes. Employer-initiated contact during a protected leave is permissible, but it should be minimal and limited to necessary updates (like relocation of the workplace or a change in operating hours), confirmation of return dates, or expressions of goodwill. Occasional, thoughtful contact can help maintain a positive connection with the employee, so long as the tone and frequency remain appropriate. But too much communication during this time, even if well meaning, may seem like the manager is infringing on the employee’s protected time away from work.

Hopefully, it goes without saying that the employee shouldn’t be asked to perform any work while on leave. The manager should wait until the employee has returned before scheduling any formal meetings or engaging in any work-related discussions.

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An employee requested an unpaid leave of absence to complete their last semester of college. Do we have to approve it? If we don’t but still want to, what should we consider before approving the employee’s request?

A leave of absence for educational purposes isn’t covered by the Family and Medical Leave Act, Americans with Disabilities Act, or similar state leave laws. However, check if you have a policy that offers unpaid leaves of absence for similar situations and determine whether the employee is eligible to take leave according to the policy.

If there is no policy and you nevertheless wish to approve the leave request, it’s important to consider the precedent you’re setting. Would you be willing to offer similar unpaid time off to other employees in the future? If not, you’ll want to be clear about why this situation is an exception.

You’ll also need to consider whether benefits will continue (and if and how the employee will pay their premium while absent) and whether seniority and other benefits will continue to accrue while the employee is on leave.

It’s also important to think through how the employee’s work will be covered during the leave of absence. For example, decide if you’ll distribute tasks among other employees or hire a temporary or contract worker for the duration of the employee’s leave.

Having said that, there can be upsides to granting the leave of absence. Offering leave or flexibility in situations like this can show support for your employees, which may improve morale, retention, and engagement.

If you decide to offer this leave, document the agreed-upon terms in a leave letter and have both you and your employee sign it. You can find a sample personal leave of absence letter on the platform.

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Who should have access to employee files?

Whoever does HR in your organization will obviously need access since they’re responsible for updating employee information and making sure everything is compliant with employment laws. Many states also grant employees the right to view their own personnel files. Other roles in your organization may need access from time to time, but that access should be limited to the following:

No one else should have access or be able to look at employee files. And even for those who do have access, they should only be reviewing the files, or parts of the file, they need to see. Having separate files for certain sensitive information (like medical documentation and I-9s) will help ensure that a manager reviewing a personnel file for performance review scores doesn’t stumble into information about an employee’s disability or other protected characteristics.

Make sure personnel files are stored securely—use locked cabinets for paper files and restrict access for electronic ones. You can view our recommendations for organizing employee files here.

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Do I need to do anything when employees come to me to vent?

It depends on what they’re venting about. If they’re complaining about conduct that might be illegal, such as harassment or threats of violence, you’ll need to investigate. This is true even if the employee asks you not to take action.

If the situation doesn’t pertain to potentially unlawful conduct, it can be helpful to ask the employee what they’re looking for. For example, ask, “Do you just need me to listen, or do you want me to do something?”.

Let the employee share their complaints and offer suggestions as to how they might be able to work it out themselves or with the assistance of their manager. If their concerns involve their manager, you may need to act as a mediator to help facilitate a conversation.

Remember, you aren’t there to solve all the employee’s problems. But by lending an empathetic ear, you can help them learn to solve issues on their own as well as build trust, so they know they can safely bring up matters that do require your direct involvement.

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What does “quid pro quo” mean in the context of workplace harassment?

Quid pro quo—a Latin phrase meaning “this for that”—refers to a specific type of unlawful sexual harassment. Quid pro quo harassment can occur in two ways:

Sexual harassment isn’t limited to quid pro quo scenarios. It can also be (and is more commonly) unlawful when it creates a hostile work environment. If you are alerted to the possibility that harassment has occurred in your workplace, you should investigate immediately. You can learn more about preventing a hostile work environment and conducting an investigation on the platform.

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If an employee puts in their notice, can we let them go that day instead of keeping them for the full notice period?

Generally, yes, you can let an employee go that same day unless there is a contract or agreement to the contrary. While you aren’t required to retain an employee or provide compensation during a resignation notice period if the employee doesn’t work, there are some things you should consider before telling the employee you don’t want them to work through their notice period.

First, if you ask the employee to leave before the end of the notice period and don’t pay them for that time, the applicable state’s unemployment insurance department may consider this an involuntary termination. If you’re concerned about that, you can pay the employee through the full notice period but tell them they don’t need to come in to work.

Second, ending their employment early could discourage others from giving notice. Other employees may not see the point of providing notice since it appears you’re not using that time for skills transfer or project completion. That could become an issue if an employee quitting without notice leaves you unable to deliver on an important project or you’re unexpectedly left without anyone who can do certain necessary tasks.

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Are we permitted to ask applicants about their immigration status?

No, you shouldn’t ask applicants about their immigration status—for example, whether they are a citizen, naturalized citizen, lawful permanent resident, or refugee. Asking about applicants’ immigration status (or any protected class) could lead to discrimination claims in the following ways:

You are allowed to ask questions about an applicant’s lawful ability to work in the United States or their potential need for sponsorship. For example, you could ask, “Are you legally authorized to work in the United States?” or “Do you now or will you in the future require employer sponsorship?”.

If you ask either of these questions, do so for all candidates and not just for those you suspect might need visa sponsorship or who may not be obviously eligible to work in the United States. You can add these questions to your job application or screening questions to ensure consistency.

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What is at-will employment?

At-will employment means that the employer or the employee can end the employment relationship at any time, with or without notice, and with or without cause. It does not, however, allow an employer to terminate someone for an illegal reason, like their inclusion in a protected class or their exercise of a legal right.

Every state (except Montana) assumes the employment relationship is at-will unless there is a legal agreement in place that says otherwise. Assuming you want to maintain the at-will relationship with employees, we recommend including clear language about this in your employee handbook.

Keep in mind that even with an at-will relationship, terminations carry risk. A terminated employee can always claim that they were terminated for an illegal reason, at which point you’ll want to be able to show otherwise. To reduce that risk, you should have and document a lawful, business-related reason for each termination. This reason should also generally be shared with the departing employee, so they understand the legitimate reasons they were let go and are less likely to come up with their own theory, which may include discriminatory motive.

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What should we include in an attendance policy?

Generally, an attendance policy should outline your attendance expectations, the procedures your employees should follow if they’re going to be late or absent, and the consequences when your policy isn’t followed.

Your expectations should include how you define being on time and what you would consider being tardy or absent. This section of your policy might say something like, “You are expected to arrive at the workplace on time and ready to perform your job.”

The procedures section of the policy tells employees what they should do in the event of a planned or unplanned absence, when they need to arrive late or leave early, or if an emergency arises and they aren’t able to notify you ahead of time. It could include instructions on whom to notify (e.g., one’s manager) and when to notify them (e.g., two hours before an unplanned absence).

The consequences section explains what happens when employees don’t follow your policy. “Failure to comply with this policy may result in disciplinary action, up to and including termination” is a typical line. You should also note how many days of unexcused absence, or no-call no-show, will constitute voluntary resignation on the part of the employee.

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What is progressive discipline?

Progressive discipline is a process for addressing performance or behavioral issues with corrective action. Instead of immediately demoting, suspending, or terminating an employee who messes up, you remind them of your policies, give them a chance to do better, and explain the consequences if they don’t. The process usually begins with a relatively informal conversation to address the issue (which would generally count as the “oral warning”) before moving on to a series of written warnings (e.g., first, second, final) followed by termination if the warnings don’t correct the issue.

Following the same steps consistently for similar situations can help reduce the likelihood of discrimination. However, note that progressive discipline isn’t appropriate for every infraction. Violations like theft, egregious harassment, or assault, for instance, might warrant immediate termination even on the first offense.

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A manager asked if they could call and not just email the candidates who were interviewed but not selected. Is this a good idea?

There’s nothing wrong with calling candidates to let them know they weren’t selected, but whether it’s a good idea really depends on what your candidates expect and what you’re seeking to accomplish.

Candidates expect an update after the completion of the interview process. You can set expectations by outlining your process when they first apply and by letting candidates know at each step how you intend to follow up with them and how quickly.

You could also ask the candidates for their preferred method of communication. A checkbox on the application would do the trick. Just make sure whoever is following up with your candidates uses the preferred method.

If you do decide to make a call, we recommend saying more than “We went with a different candidate” or “We found a better fit.” Take the opportunity to provide the candidate with objective feedback. You should also be prepared to answer questions on the spot. They might want additional details as to why they weren’t selected or ask advice about what they could have done better. Being ready to offer them useful feedback can end the candidate’s experience on a positive note, even though they weren’t selected for the job.

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What is a total compensation statement?

A total compensation statement is a document that provides employees with a view of their compensation beyond just wages or salary. It’s meant to give employees a complete picture of what the company has invested in them. It details not only base pay but also bonuses, paid time off, health and wellness benefits, retirement program matching, and any other perks that are funded by the employer.

You can find an example of a total compensation statement on the platform. If you decide to provide a total compensation statement to your employees, we recommend explaining the purpose of the document to them and preparing managers to answer questions that may come up.

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What is a “plan document” with respect to insurance plans offered by private employers?

A plan document is the official governing document of employee benefit plans, such as health, welfare, and retirement plans. The Employee Retirement Income Security Act (ERISA) requires that almost all private employers that sponsor benefit plans have corresponding plan documents.

Your plan document should include specific information about the plan, such as eligibility, funding and contribution requirements, details about each benefit, and ERISA disclosures. You should have separate ERISA plan documents for retirement plans and the health and welfare plans because the structure, funding, and legal requirements for these plan types differ.

ERISA also requires a summarization of the plan document, called the Summary Plan Description (SPD), to be provided to employees within 90 days of becoming covered under the plan and when the plan document is changed. The SPD should be written in plain language so it’s easy for employees to understand the plan’s features and benefits.

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I read that FMLA entitles eligible employees to 12 weeks of unpaid, job-protected leave. What does “job-protected” mean?

When a leave of absence is “job-protected,” you can’t terminate or demote the employee, or take away any benefit they earned or were entitled to, simply because they took that time off. Upon their return, you generally need to restore them to their original job or an equivalent position with the same pay, benefits, and other terms and conditions of employment. It enables employees to take time off without having to worry about losing their job or facing other adverse employment action.

Job-protected leave does not, however, provide safeguards against layoffs or job changes that would have occurred even if the employee hadn’t taken leave. It also doesn’t prohibit you from disciplining or terminating an employee after their leave. That said, if you need to take adverse action while they’re on leave or shortly afterwards, it’s especially important to document the legitimate business reasons for the action in case the employee claims your motives are retaliatory.

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What does my employee mean when they say they’re going to “file a claim” for discrimination with the EEOC?

In the context, filing a claim of discrimination means lodging a formal complaint with the Equal Employment Opportunity Commission (EEOC). The EEOC is the federal agency that enforces Title VII of the Civil Rights Act, where most of our federal employment discrimination prohibitions come from. A claim can be filed by an employee, former employees, or job applicant. The claim will assert that they were discriminated against by the employer because of their race, color, religion, sex, pregnancy, gender identity, sexual orientation, national origin, age, disability, genetic information, or another protected characteristic.

When the EEOC receives a claim of discrimination, it sends a notice of the charge to the employer. The notice will either ask the parties to participate in a mediation program to resolve the claim or instruct the employer to provide a written answer to the charge before it investigates. Although discrimination claims usually need to be filed with the EEOC before a person can sue, filers don’t have to wait for the EEOC to investigate and can instead ask for a “right to sue” letter, which will usually end the EEOC’s investigation. A lawsuit may follow, depending on the outcome and circumstances.

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Can we ask applicants to share their pronouns on our job application?

In general, yes. There are some things to consider.

First, the question should be optional and clearly stated as such on the application.

Second, if you ask for pronouns on the application, screeners and interviewers should use them. Your workplace culture won’t come across as authentic or inclusive if the applicant’s stated pronouns are disregarded.

Third, ensure that those making hiring recommendations or decisions understand that a candidate’s choice to identify or not identify their pronouns, as well as the pronouns they choose, should not figure into the hiring decision. Collecting this information could lead to a discrimination claim if an applicant believed they were excluded because of their gender identity.

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What is a health flexible spending account?

A health flexible spending account (HFSA) lets employees set aside pre-tax money from their paycheck during the year, and they can use this money to pay for eligible healthcare expenses for themselves, their spouse, or their dependents. The funds in these accounts are typically “use it or lose it,” with some exceptions for carryover or grace period options, based on the employer’s plan design.

Employees can use their HFSA funds for many healthcare-related costs allowed by the IRS, such as insurance plan deductibles and copays, prescriptions and over-the-counter drugs and medications, dental and vision care, and chiropractic services. Payments for these services can be made directly to the healthcare provider or retailer using a debit card linked to the account or by filing for reimbursement with the HFSA provider.

Employees like having HFSAs as these accounts allow them to set aside pre-tax money for some of those regular costs, such as new glasses, or for a planned medical procedure, while also providing upfront access to funds to help them manage unexpected medical expenses more effectively.

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We’ve decided to bring employees back into the office a few days each week and change our remote work policies. Some employees have been grumbling about this change. What should we do?

Any time you make a change like this, you can expect a certain amount of employee complaints. People aren’t inherently great with change, and the benefits of remote work can be hard to part with. Given that, instead of trying to shut down complaints (which could potentially run afoul of employees’ rights under the National Labor Relations Act), we recommend a few things you can do to help bring employees onboard with the idea.

One way to do this would be to hold a virtual meeting where you share your reasons for returning to the office and invite employees to share—during the meeting or afterwards—what support they may need to make the return as smooth as possible.

During this meeting, be transparent about why you’re adopting a hybrid policy, noting both the benefits to the organization and to employees. Let them know that you understand that this change will cause some disruption to their lives and that you want to support them during the transition.

To help employees feel better about returning to the office, you might also consider offering perks such as a stipend for parking and commuting costs, a well-stocked fridge and snack drawer, or a more flexible in-office dress code.

While you will never be able to stop all the complaining, providing transparent communication and allowing employees to be heard is essential to gaining their support for any policy changes.

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Should we include a pay range in our job postings even though we aren’t required to by law?

We generally recommend including pay ranges in job postings even if it isn’t legally required. First, since the practice has become more common, more job seekers expect it, and many won’t apply for jobs that don’t include a pay range. By not including this information, you risk missing out on top talent. Second, sharing pay information upfront has the potential to save you time and money. You’re much less likely to have a candidate you’ve already spent a lot of time with reject your offer because the pay didn’t meet their expectations. You’re also less likely to get negotiated into a pay range that you can’t really afford or that would create pay equity issues in the organization.

That said, sharing pay information in job postings will put a spotlight on your overall pay practices and any pay disparities. Your current employees could start asking questions about their own pay, especially if their pay falls below the range for comparable work. You and your managers should prepare to have these conversations and make necessary adjustments. You can learn more about pay transparency by visiting our chart that outlines the states and localities that require pay ranges to be posted.

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What’s the difference between exempt and nonexempt and how do we know which classification to use?

Exempt and nonexempt are classifications under the Fair Labor Standards Act (FLSA), a federal law requiring that most employees receive at least minimum wage for each hour worked and overtime pay for hours worked over 40 in a workweek. Employees who are entitled to both minimum wage and overtime are called nonexempt, while those who are not entitled to both are called exempt.

Any position can be nonexempt. However, if you want to classify a position as exempt, it needs to qualify for one of the exemptions listed in the FLSA.

The most common exemptions are those for executive, administrative, and professional employees. These are often known as the EAP or white collar exemptions. But to qualify, each employee must pass a three-part test:

If an employee meets all the necessary criteria, they can be properly classified as exempt. If they don’t, they’ll need to be classified as nonexempt and paid at least minimum wage and overtime when applicable.

Note that teachers and practicing doctors and lawyers don’t have to pass the salary level and salary basis tests to be classified as exempt. And exempt computer employees (a subset of the professional category) can be paid on an hourly basis, so long as they’re paid the applicable hourly minimum, as determined by DOL rules.

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We’re considering demoting an employee. What questions should we ask ourselves to ensure we are making the right decision?

Demotions, like other employment decisions, need to be handled carefully. You should ask yourself the following questions to ensure you are handling the situation fairly and legally:

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We’ve just hired a remote employee who will be working in a different state. Do we need to make a new employee handbook?

You probably don’t need a whole new employee handbook, but you’ll certainly want to review the one you currently have in light of the laws in the state where the remote employee is located.

As you may know, you need to follow the laws in the state where the employee will be physically performing their work. States have a wide range of requirements regarding wages, breaks, leaves, and other employment matters, so it’s essential to learn about the requirements in the states where your remote employee will be working.

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How can we help our employees feel more comfortable providing feedback about their managers?

Employees are often uncomfortable providing feedback about their managers because they fear workplace tension or retaliation, they aren’t sure what to say, or they don’t believe anything will change. The following practices can help address these concerns:

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Do we need to pay our remote employees for a full day if they lose internet access for a few hours?

It depends on their status under the Fair Labor Standard Act (FLSA). Your exempt employees need to be paid their full salary for the day if they did any work before or after the outage (or both).Your nonexempt employees only need to be paid for time worked. So, if your employees didn’t do any other work while their internet was down, you don’t have to pay them for those hours. Note that any time they spent troubleshooting the connection, either by themselves or with your IT department, would likely qualify as work and should be paid.

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Does taking FMLA intermittently affect an employee’s full-time status or eligibility for health benefits?

No. The Family and Medical Leave Act (FMLA) is clear on this point. You must maintain the employee’s coverage under any group health plan with the same conditions as if the employee had not taken leave and been continuously working full time during the entire leave period. The specific coverage should also be maintained, both in terms of who is covered under the plan (e.g., employee, employee and spouse, employee and family) and what the coverage includes (e.g., medical, dental, vision).

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We have an exempt employee who is going to be working part-time hours indefinitely. Do we need to switch them to hourly nonexempt or can we simply reduce their salary while keeping them exempt?

You don’t necessarily need to change their classification, but the minimum salary for exempt employees—which will be determined by federal or state law—can’t be prorated based on the number of hours worked. This means you can only keep the employee as exempt if, after the salary reduction, they still make at least the applicable minimum salary. If their new pay is below the minimum for exemption, you’ll need to reclassify them as nonexempt and pay them based on the number of hours they work.

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