Reclassification is the HR process of changing an employee’s job title, pay grade, or classification based on significant changes in duties, responsibilities, or required qualifications.
It ensures that an employee’s compensation and job status remain fair and aligned with their actual work.

Reclassification can also help maintain compliance with labor laws, such as correct exempt/non-exempt classification under wage regulations.

Why Reclassification Matters

• Ensures Fair Compensation – Matches pay to the current scope of responsibilities.
  
• Maintains Job Alignment – Reflects accurate role expectations.
  
• Supports Legal Compliance – Helps meet wage and hour classification laws.
  
• Improves Employee Morale – Shows recognition for expanded duties.
  
• Aids in Workforce Planning – Keeps job structures up to date.
  

Common Reasons for Reclassification

1. Expanded Job Duties – Additional responsibilities beyond the original role.
   
2. Organizational Restructuring – New job structures require updated titles.
   
3. Market Benchmarking – Aligning roles with current industry pay rates.
   
4. Legal Compliance – Adjusting exempt/non-exempt classification.
   
5. Job Evaluation Findings – Formal review shows role changes.
   

Best Practices for Reclassification

• Conduct a job analysis before making changes.
  
• Compare the role to market salary data.
  
• Consult legal and compliance teams when needed.
  
• Communicate changes clearly to the employee.
  
• Document all reclassification decisions for HR records.
  

FAQs: Reclassification

Q1: Is reclassification the same as a promotion?
A: Not necessarily—promotions often include higher responsibilities and pay, while reclassification adjusts the role to match actual duties.

Q2: Can reclassification result in a pay decrease?
A: In some cases, yes—if responsibilities are reduced, but this should be handled carefully to maintain morale.

Q3: Who decides if a role should be reclassified?
A: Typically HR, in consultation with managers and leadership.

Q4: How often should job classifications be reviewed?
A: At least annually or when significant job changes occur.

Q5: Can reclassification affect employee benefits?
A: Yes—if benefits are tied to job level or pay grade.