Some of your salaried employees are about to become hourly employees, and there’s nothing you can do to stop it. Starting on December 1, 2016, the minimum salary needed to qualify for a salary exemption will jump from $455 a week ($23,660 per year) to $913 per week ($47,476 per year). If you have employees who are currently exempt from overtime who earn less than $47,476 per year, you’ll have to change the way they are paid.
How should you tell your employees? Some of them won’t take it very well. You should have managers sit down, one on one, to deliver the news. But you’ll also want to follow up with written communication. Here is a sample letter to get you started. You will need to modify it for your specific situation. Please pay attention to local laws as well.
To read the sample letter click here: How to tell your salaried employees they are now hourly