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.
 
This Q&A does not constitute legal advice and does not address state or local law.

Managing part-time hours for exempt employees can be complex. Our HR experts are here to help you navigate this and other classification challenges. Complete the form below to get personalized advice and expert guidance.

Recommended For You

Creative Workplace Perks That Boost Engagement Employee Engagement Benefits

Creative Workplace Perks That Boost Engagement

Barbara Collins
Barbara Collins May 5, 2025
Did You Know: A.I. Keeps Your Chats? Human Resources

Did You Know: A.I. Keeps Your Chats?

Barbara Collins
Barbara Collins April 29, 2025
Boosting Employee Engagement in 2025

Boosting Employee Engagement in 2025

Barbara Collins
Barbara Collins April 28, 2025