{
    "schema": "amendsignal.record/1",
    "generated_on": "2026-11-04",
    "publisher": {
        "name": "AmendSignal",
        "url": "https://amendsignal.com/"
    },
    "notice": "Coverage is limited, so a missing record does not mean nothing changed. General information, not legal advice. Check the official source. Please cite the record's url.",
    "change": {
        "id": 56,
        "url": "https://amendsignal.com/changes/wage-and-hour-division-says-employers-may-reclassify-exempt-professionals-as-hourly-non-exempt-staff/",
        "title": "Wage and Hour Division says employers may reclassify exempt professionals as hourly non-exempt staff",
        "change_type": "guidance",
        "change_type_label": "Opinion letter",
        "status": "guidance_issued",
        "status_label": "Issued as agency guidance",
        "status_statement": "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.",
        "significance": "No new requirements",
        "jurisdiction": {
            "code": "US",
            "name": "United States"
        },
        "authority": {
            "name": "Wage and Hour Division",
            "short_name": "WHD"
        },
        "identifiers": [
            {
                "type": "opinion_letter_number",
                "label": "Opinion letter",
                "value": "FLSA2026-1"
            }
        ],
        "dates": [
            {
                "type": "publication",
                "label": "Published",
                "value": "2026-01-05",
                "precision": "day"
            }
        ],
        "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.",
            "whos_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."
        },
        "summary": "In opinion letter FLSA2026-1, the Department of Labor's Wage and Hour Division (WHD) says a licensed clinical social worker who lost supervisory duties could still meet the Fair Labor Standards Act (FLSA) learned professional exemption, but a switch to hourly pay would likely end it. The letter also says employers may choose to classify qualifying employees as non-exempt, as long as they pay minimum wage and overtime. It answers one employee's facts and creates no new legal requirement.",
        "business_functions": {
            "state": "limited",
            "functions": [
                {
                    "slug": "human-resources",
                    "name": "Human resources"
                },
                {
                    "slug": "payroll",
                    "name": "Payroll"
                },
                {
                    "slug": "legal-and-compliance",
                    "name": "Legal and compliance"
                }
            ]
        },
        "added_on": "2026-11-03",
        "updated_on": null,
        "updates_in_progress": null,
        "last_checked": "2026-11-02",
        "record_url": "https://amendsignal.com/changes/wage-and-hour-division-says-employers-may-reclassify-exempt-professionals-as-hourly-non-exempt-staff/record.json",
        "what_changed": [
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Letter heading",
                        "excerpt": "FLSA2026-1"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Background",
                        "excerpt": "You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opening paragraph",
                        "excerpt": "It is our opinion that, under the circumstances presented, the discontinuation of supervisory responsibilities would not preclude your classification as an exempt learned professional"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opening paragraph",
                        "excerpt": "your change from being paid on a salary basis to being paid on an hourly basis would likely defeat the exemption."
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "the Act does not require an employer to classify as exempt an employee who meets the requirements of an exemption."
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "The FLSA only prohibits the misclassification of a non-exempt employee as an exempt one."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "“Social Workers with master’s degrees who work in the field of their degree[] will generally meet” the duties requirements for exemption"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "the possession of a professional license and master’s degree does not alone establish that you are an exempt learned professional"
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 2",
                        "excerpt": "the Department is currently enforcing a $684 per week salary level requirement."
                    }
                ]
            }
        ],
        "who_is_affected": [
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Background",
                        "excerpt": "You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization."
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Note (end of letter)",
                        "excerpt": "This opinion is based exclusively on the facts and circumstances described in your request"
                    }
                ]
            },
            {
                "kind": "inference",
                "kind_label": "Our analysis",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "Employers may decide not to classify any qualified employees as exempt or only a subset of employees"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 3",
                        "excerpt": "To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,”"
                    }
                ]
            }
        ],
        "business_implications": [
            {
                "kind": "inference",
                "kind_label": "Our analysis",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "inference",
                "kind_label": "Our analysis",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 3",
                        "excerpt": "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"
                    }
                ]
            },
            {
                "kind": "inference",
                "kind_label": "Our analysis",
                "text": "Reclassified employees bring non-exempt recordkeeping duties, though employers may still give them pay structures, benefits and scheduling flexibility like those of exempt staff.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "The letter is an official interpretation that may be relied on under section 10 of the Portal-to-Portal Act.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Closing paragraph",
                        "excerpt": "This interpretation may be relied upon in accordance with section 10 of the Portal-to-Portal Act"
                    }
                ]
            }
        ],
        "required_actions": [
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "General Legal Principles",
                        "excerpt": "The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 3",
                        "excerpt": "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"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 2",
                        "excerpt": "the Department is currently enforcing a $684 per week salary level requirement."
                    }
                ]
            },
            {
                "kind": "fact",
                "kind_label": "From the source",
                "text": "Under the FLSA recordkeeping regulations, non-exempt employees are subject to recordkeeping requirements that do not apply to exempt executive, administrative or professional employees.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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"
                    }
                ]
            }
        ],
        "recommended_actions": [
            {
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 2",
                        "excerpt": "the Department is currently enforcing a $684 per week salary level requirement."
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "text": "Consider updating timekeeping, recordkeeping and payroll system settings for employees moved to non-exempt status.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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"
                    }
                ]
            },
            {
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "the possession of a professional license and master’s degree does not alone establish that you are an exempt learned professional"
                    }
                ]
            },
            {
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "text": "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.",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            }
        ],
        "required_actions_assessment": null,
        "applicability": [
            {
                "criterion": "where",
                "label": "Where",
                "answer": "United States, nationwide",
                "kind": "fact",
                "kind_label": "From the source",
                "evidence": []
            },
            {
                "criterion": "employer_type",
                "label": "Employers",
                "answer": "Employers covered by the FLSA that classify or reclassify employees as exempt learned professionals; the letter itself answers one employee's facts.",
                "kind": "inference",
                "kind_label": "Our analysis",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "General Legal Principles",
                        "excerpt": "The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked"
                    },
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Note (end of letter)",
                        "excerpt": "This opinion is based exclusively on the facts and circumstances described in your request"
                    }
                ]
            },
            {
                "criterion": "size",
                "label": "Size",
                "answer": "The letter sets no size threshold; it refers only to covered employers.",
                "kind": "inference",
                "kind_label": "Our analysis",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "General Legal Principles",
                        "excerpt": "The FLSA generally requires covered employers to pay employees at least the federal minimum wage (currently $7.25 an hour) for all hours worked"
                    }
                ]
            },
            {
                "criterion": "industries",
                "label": "Industries",
                "answer": "All industries that use the learned professional exemption, with health care employers of licensed social workers most directly affected.",
                "kind": "inference",
                "kind_label": "Our analysis",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Background",
                        "excerpt": "You represent that you are employed as a Licensed Clinical Social Worker (LCSW) for a healthcare organization."
                    }
                ]
            },
            {
                "criterion": "functions",
                "label": "Functions",
                "answer": "Human resources and payroll, with legal and compliance for classification decisions.",
                "kind": "inference",
                "kind_label": "Our analysis",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opinion",
                        "excerpt": "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."
                    }
                ]
            },
            {
                "criterion": "applies_if",
                "label": "Applies if",
                "answer": "You treat employees as exempt learned professionals, move them from salary to hourly pay, or reclassify them as non-exempt.",
                "kind": "inference",
                "kind_label": "Our analysis",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Opening paragraph",
                        "excerpt": "your change from being paid on a salary basis to being paid on an hourly basis would likely defeat the exemption."
                    }
                ]
            },
            {
                "criterion": "action",
                "label": "Action",
                "answer": "Check exempt professionals' pay basis and pay overtime to anyone reclassified as non-exempt.",
                "kind": "recommendation",
                "kind_label": "Our suggestion",
                "evidence": [
                    {
                        "source": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf",
                        "locator": "Footnote 3",
                        "excerpt": "To satisfy the learned professional exemption, an employer must pay the employee at or above the regulatory threshold (referenced above) on a “salary basis,”"
                    }
                ]
            }
        ],
        "open_questions": [
            {
                "question": "How long will the Department of Labor keep enforcing the $684 per week salary level?",
                "context": "The letter ties the current level to ongoing litigation over a vacated 2024 update and gives no end date."
            },
            {
                "question": "Can an employer whose facts differ from the requester's rely on this letter?",
                "context": "The letter says it is based only on the facts the requester described and that other facts might lead to a different conclusion."
            }
        ],
        "events": [
            {
                "event_type": "originating_action",
                "label": "Issued",
                "occurred_on": "2026-01-05",
                "summary": "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": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf"
            }
        ],
        "corrections": [],
        "sources": [
            {
                "label": "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.",
                "publisher": "Wage and Hour Division",
                "role": "primary",
                "url": "https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-1.pdf"
            }
        ]
    }
}