Opinion letter · United States · Wage and Hour Division

Wage and Hour Division says employers may reclassify exempt professionals as hourly non-exempt staff

As of our last check on November 2, 2026, this is agency guidance, not a rule. It explains how the agency reads the law and does not create a legal requirement on its own.

Added to AmendSignal November 3, 2026

In short

What changed: In an opinion letter, the Wage and Hour Division (WHD) says losing supervisory duties does not by itself end the Fair Labor Standards Act (FLSA) learned professional exemption, but moving to hourly pay likely does. It adds that employers may classify qualifying employees as non-exempt for business reasons.
Who's affected: Employers covered by the FLSA that classify employees as exempt learned professionals or reclassify them, especially health care employers with licensed social workers. The letter answers one employee's facts.
What to do: This letter creates no new duties for employers. If you reclassify exempt professionals as non-exempt or move them to hourly pay, pay at least minimum wage and overtime for hours over 40, and note that the Department of Labor is currently enforcing a $684 per week salary level for this exemption.

Does this apply to you?

Employers: Employers covered by the FLSA that classify or reclassify employees as exempt learned professionals; the letter itself answers one employee's facts.

Our analysisGeneral Legal Principles

The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Note (end of letter)

This opinion is based exclusively on the facts and circumstances described in your request
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)
Where: United States, nationwide
From the source
Size: The letter sets no size threshold; it refers only to covered employers.

Our analysisGeneral Legal Principles

The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)
Industries: All industries that use the learned professional exemption, with health care employers of licensed social workers most directly affected.

Our analysisBackground

You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)
Functions: Human resources and payroll, with legal and compliance for classification decisions.

Our analysisOpinion

employers have the discretion to classify such employees as non-exempt as long as they pay at least the federal minimum wage for all hours worked and the overtime premium for work in excess of 40 hours in a workweek.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)
Applies if: You treat employees as exempt learned professionals, move them from salary to hourly pay, or reclassify them as non-exempt.

Our analysisOpening paragraph

your change from being paid on a salary basis to being paid on an hourly basis would likely defeat the exemption.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)
Action: Check exempt professionals' pay basis and pay overtime to anyone reclassified as non-exempt.

Our suggestionFootnote 3

To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,”
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Classified under

Functions: Human resources, Payroll, Legal and compliance
Workflows: Employee classification, Recordkeeping, Timekeeping, Wage calculation

Key facts

Status: Issued as agency guidance
Published: January 5, 2026
Issued by: Wage and Hour Division
Opinion letter: FLSA2026-1

What changed

From the sourceLetter heading

FLSA2026-1
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Background

You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

WHD issued opinion letter FLSA2026-1 in response to a licensed clinical social worker at a health care organization whose employer reclassified the position from exempt to hourly non-exempt after a restructuring.
From the sourceOpening paragraph

It is our opinion that, under the circumstances presented, the discontinuation of supervisory responsibilities would not preclude your classification as an exempt learned professional
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opening paragraph

your change from being paid on a salary basis to being paid on an hourly basis would likely defeat the exemption.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

if, as your letter suggests, your compensation has changed to hourly, you would likely no longer meet the compensation criteria, and would no longer qualify for the exemption, even if your duties remain the same.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

WHD says the end of supervisory duties would not by itself prevent the employee from qualifying as an exempt learned professional, but the change from salary to hourly pay would likely defeat the exemption, even if duties stay the same.
From the sourceOpinion

the Act does not require an employer to classify as exempt an employee who meets the requirements of an exemption.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

The FLSA only prohibits the misclassification of a non-exempt employee as an exempt one.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

WHD says the employer, not the employee, claims an exemption, so an employer may classify a qualifying employee as non-exempt. The FLSA only prohibits treating a non-exempt employee as exempt.
From the sourceOpinion

“Social Workers with master’s degrees who work in the field of their degree[] will generally meet” the duties requirements for exemption
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

the possession of a professional license and master’s degree does not alone establish that you are an exempt learned professional
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

WHD repeats its earlier view that social workers with master's degrees working in their field generally meet the duties test, but says a license and degree alone do not establish the exemption.
From the sourceFootnote 2

the Department is currently enforcing a $684 per week salary level requirement.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Because of ongoing litigation over a 2024 salary level update that a court vacated, the Department of Labor says it is currently enforcing a $684 per week salary level.

Who is affected

From the sourceBackground

You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Note (end of letter)

This opinion is based exclusively on the facts and circumstances described in your request
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

The letter responds to one employee, a licensed clinical social worker at a health care organization, and is based only on the facts that employee described.
Our analysisOpinion

Employers may decide not to classify any qualified employees as exempt or only a subset of employees
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Footnote 3

To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,”
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

The reasoning is most relevant to employers that classify employees as exempt learned professionals, such as health care and social service employers with licensed social workers, and to any employer reclassifying exempt staff as non-exempt.

What it means in practice

Our analysisOpinion

employers have the discretion to classify such employees as non-exempt as long as they pay at least the federal minimum wage for all hours worked and the overtime premium for work in excess of 40 hours in a workweek.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

There is no indication based on the facts provided that this action violates the Act, assuming that your wages were calculated properly for the workweek in which the transition occurred.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Employers can reclassify exempt employees as non-exempt for business reasons such as a restructuring, as long as they pay minimum wage and overtime and calculate pay correctly for the workweek of the change.
Our analysisFootnote 3

To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,” ... a “fee basis,” ... or a time-based rate that includes a minimum guarantee that bears a reasonable relationship
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Moving an exempt professional to hourly pay without a qualifying salary, fee or guaranteed minimum likely makes that employee non-exempt, so overtime would be owed for hours over 40.
Our analysisOpinion

non-exempt employees are subject to certain recordkeeping requirements which do not apply to exempt individuals employed in an executive, administrative, or professional capacity, see 29 C.F.R. § 516.3
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

an employer may decide to provide its non-exempt employees with pay structures, employment benefits, and scheduling flexibility similar to those it provides to its exempt employees.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Reclassified employees bring non-exempt recordkeeping duties, though employers may still give them pay structures, benefits and scheduling flexibility like those of exempt staff.
From the sourceClosing paragraph

This interpretation may be relied upon in accordance with section 10 of the Portal-to-Portal Act
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

The letter is an official interpretation that may be relied on under section 10 of the Portal-to-Portal Act.

What to do

AmendSignal analysis sorts these by whether this document changes them.

Already required

From the sourceGeneral Legal Principles

The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

employers have the discretion to classify such employees as non-exempt as long as they pay at least the federal minimum wage for all hours worked and the overtime premium for work in excess of 40 hours in a workweek.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Under the FLSA, covered employers must pay non-exempt employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked and the overtime premium for hours over 40 in a workweek. The letter describes this existing requirement.
From the sourceFootnote 3

To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,” ... a “fee basis,” ... or a time-based rate that includes a minimum guarantee that bears a reasonable relationship
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Footnote 2

the Department is currently enforcing a $684 per week salary level requirement.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Under the FLSA regulations, to treat an employee as an exempt learned professional, an employer must pay at or above the salary threshold (which the Department of Labor is currently enforcing at $684 per week) on a salary basis, a fee basis, or a time-based rate with a reasonable minimum guarantee.
From the sourceOpinion

non-exempt employees are subject to certain recordkeeping requirements which do not apply to exempt individuals employed in an executive, administrative, or professional capacity, see 29 C.F.R. § 516.3
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Under the FLSA recordkeeping regulations, non-exempt employees are subject to recordkeeping requirements that do not apply to exempt executive, administrative or professional employees.

Worth considering

Our suggestionFootnote 2

the Department is currently enforcing a $684 per week salary level requirement.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Also: Opinion

if, as your letter suggests, your compensation has changed to hourly, you would likely no longer meet the compensation criteria, and would no longer qualify for the exemption, even if your duties remain the same.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Consider reviewing how employees classified as exempt learned professionals are paid, to confirm each receives a qualifying salary, fee or guaranteed minimum at or above $684 per week.
Our suggestionOpinion

There is no indication based on the facts provided that this action violates the Act, assuming that your wages were calculated properly for the workweek in which the transition occurred.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

When reclassifying an employee from exempt to non-exempt, consider checking that pay for the workweek of the change is calculated correctly, including any overtime.
Our suggestionOpinion

non-exempt employees are subject to certain recordkeeping requirements which do not apply to exempt individuals employed in an executive, administrative, or professional capacity, see 29 C.F.R. § 516.3
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Consider updating timekeeping, recordkeeping and payroll system settings for employees moved to non-exempt status.
Our suggestionOpinion

the possession of a professional license and master’s degree does not alone establish that you are an exempt learned professional
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Consider reviewing whether exempt social worker roles require a specialized advanced degree and use that knowledge as the primary duty, since a license and degree alone do not establish the exemption.
Our suggestionOpinion

an employer may decide to provide its non-exempt employees with pay structures, employment benefits, and scheduling flexibility similar to those it provides to its exempt employees.
Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab)

Consider explaining to reclassified employees what changes and what stays the same, since the letter notes employers may keep similar pay structures, benefits and scheduling flexibility for non-exempt staff.

Open questions

The source leaves these open. We'll update this record if a later document answers them.

How long will the Department of Labor keep enforcing the $684 per week salary level?

The letter ties the current level to ongoing litigation over a vacated 2024 update and gives no end date.
Can an employer whose facts differ from the requester's rely on this letter?

The letter says it is based only on the facts the requester described and that other facts might lead to a different conclusion.

Related changes

History

Latest · January 5, 2026 · Issued

FLSA2026-1: Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. Source (opens in a new tab)

Sources

Whether an employee's role meets the criteria for the learned professional exemption under section 13(a)(1) of the FLSA, and, if so, whether an employer is nevertheless permitted to reclassify the employee as non-exempt. (opens in a new tab) Wage and Hour Division, primary source