Can I change an employee from salary to hourly?

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Can I change an employee from salary to hourly?

I have a small company and have 3 employees that are currently on a salary wage. I would like to change them to hourly and was wondering if it is legal? If so, how much notice do I have to give my employees?

Asked on July 18, 2011 under Employment Labor Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Yes you are within your legal rights to change your employees from salary to hourly. Absent a violation of your own company policy or a union/employment contract, orif  discrimination is a factor in your decision, as an at will employer you are entitled to change the terms of employment as you sees fit. Additionally this can be done with or without notice. That having been said, to the extent that these employees are "non-exempt" from federal labor laws, any hours that they work over 40 per week must be paid overtime (1 1/2 times the employees hourly rate).


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