The Department of Labor’s Wage and Hour Division recently issued Opinion Letter FLSA2026‑1, addressing a question from a Licensed Clinical Social Worker (LCSW) who was reclassified from exempt to non‑exempt status after an internal restructuring. The employee believed they still met the criteria for the Fair Labor Standards Act’s “learned professional” exemption, even though their supervisory duties were removed. The letter clarifies that losing supervisory responsibilities does not automatically disqualify someone from the learned professional exemption, because that exemption is based on advanced knowledge and specialized education—not managerial duties.
The DOL explains that the learned professional exemption applies when an employee’s primary duty requires advanced knowledge in a field of science or learning, typically obtained through prolonged specialized instruction. In this case, the LCSW’s clinical duties—such as assessments, treatment planning, crisis intervention, and interdisciplinary collaboration—likely satisfy the duties test. The letter also notes that Utah’s licensing requirements for LCSWs, which mandate at least a master’s degree in social work, support the conclusion that the role involves the necessary academic preparation.
However, meeting the duties test is only part of the equation. To qualify as exempt, an employee must also meet the FLSA’s compensation requirements, including being paid on a salary basis at or above the regulatory threshold. The opinion letter emphasizes that if the employer shifts the employee from salary to hourly pay, the employee will likely no longer meet the compensation criteria for exemption—even if their job duties remain unchanged. The DOL also underscores that employers are not required to classify an employee as exempt simply because the employee meets the exemption criteria; employers may choose to classify them as non‑exempt as long as wage and overtime laws are followed.
Ultimately, the DOL concludes that the employer’s decision to reclassify the LCSW as non‑exempt does not violate the FLSA, provided the employer pays minimum wage and overtime correctly during and after the transition. The letter reinforces that the FLSA prohibits misclassifying non‑exempt employees as exempt—not the other way around. While the employee may still meet the learned professional exemption criteria, the employer retains discretion in classification decisions. The opinion encourages employees in similar situations to use this information to have informed discussions with their employers about job duties, compensation structure, and classification.
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