Employee classification questions don’t come up only when someone is misclassified. They often arise when an employer makes a deliberate business decision to change how a role is treated.
A recent U.S. Department of Labor (DOL) opinion letter is a good reminder of that distinction, and it’s especially relevant for New York employers navigating both federal and state wage and hour rules.
What Prompted The DOL Opinion
In a January 5, 2026 opinion letter, the DOL addressed whether an employee who appears to meet the duties test for the learned professional exemption must be classified as exempt under the Fair Labor Standards Act.
The learned professional exemption generally applies to employees whose jobs require advanced, specialized education and professional judgment, not just experience or on-the-job training. These roles typically involve work that’s intellectual in nature, requires discretion, and is tied to a specific field of study, such as law, medicine, or certain licensed healthcare professions. To qualify, the employee usually must meet both the duties requirements and the salary basis rules, and job titles alone don’t decide whether the exemption applies.
Here, the employee was a licensed clinical social worker who believed the reclassification from exempt to non-exempt was improper because their job duties still required advanced education and professional judgment.
Their employer had also eliminated supervisory responsibilities as part of an internal restructuring.
What The DOL Clarified
The Department of Labor made several points that matter for employers.
First, losing supervisory duties doesn’t automatically defeat the learned professional exemption. Supervision is relevant to the executive exemption, not the learned professional exemption. What matters here is whether the work requires advanced knowledge in a field of science or learning that’s customarily acquired through specialized education.
Second, how the employee is paid still matters. Even if job duties qualify, most white-collar exemptions require payment on a salary or qualifying fee basis. Moving an employee to hourly pay will usually eliminate the exemption.
Third, and most important, employers aren’t required to apply an exemption even when the criteria are met. The FLSA prohibits misclassifying non-exempt employees as exempt. It doesn’t require employers to treat qualifying employees as exempt.
In other words, the law sets minimum requirements, not mandatory classifications.
What New York Employers Should Keep In Mind
New York follows the same general framework as federal law, but with higher standards and greater enforcement risk.
Salary Thresholds Are Higher In New York
New York’s salary basis thresholds for executive and administrative exemptions exceed the federal minimum and vary by region. Even when duties support an exemption, failing to meet the New York salary threshold will defeat it.
Duties Are Closely Scrutinized
Courts look at what employees actually do, not their titles. Job descriptions should reflect reality, and classifications should be revisited when roles change.
Employers Still Have Discretion
Just like under federal law, New York doesn’t require employers to classify employees as exempt simply because they could qualify. Employers may choose non-exempt classification as long as minimum wage, overtime, and other pay requirements are met.
Consistency And Documentation Matter More Than Ever
New York’s wage and hour laws carry steep penalties, including liquidated damages and attorneys’ fees. That makes it critical to document classification decisions and apply them consistently across similarly-situated roles.
For additional context on how New York approaches wage and hour enforcement, you may want to revisit our earlier post, HR Alert: New York Cracks Down on Wage Theft.
How Classification Connects To Overtime And Pay Practices
Reclassification decisions often trigger downstream wage and hour obligations. Once an employee is non-exempt, overtime rules, timekeeping practices, and pay calculations come into play.
If you’re reviewing exempt roles or considering a reclassification, it’s worth revisiting how overtime must be calculated and paid. We covered those issues in HR Alert: [Mis]Calculating Overtime Pay, which walks through common compliance pitfalls.
Employers also should remember that non-exempt status affects how time is tracked and compensated, including certain types of travel and work-related time. For a deeper dive on that topic, see HR Alert: Travel Time Compensation.
Practical Takeaways For HR And Management
This DOL opinion letter reinforces a few core principles.
- Employers may lawfully reclassify exempt employees as non-exempt for legitimate business reasons.
- Paying an employee hourly will usually eliminate most white-collar exemptions.
- Duties alone don’t control classification.
- New York’s higher standards make proactive review essential.
- Clear communication during restructurings helps reduce confusion and risk.
Putting This Guidance Into Practice
Employee classification is one of the most common sources of wage and hour exposure for New York employers. If you’re considering a reclassification, responding to employee concerns, or reviewing exempt roles after a restructuring, it’s smart to get guidance before issues arise.
If you have questions, please reach out at 716.839.9700 or email us at info@coppolalegal.com.
We’re here to help.
