Can my employer reduce my hourly rate if I was a salaried manager?

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Can my employer reduce my hourly rate if I was a salaried manager?

I was a salaried manager making $800 per week which would make my

hourly rate $20 an hour. The company reduced our hour rate with 5 hours overtime so that it adds up to our salary. By law, can they reduce my hourly rate like that?

Asked on November 21, 2016 under Employment Labor Law, Florida

Answers:

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

Answered 4 years ago | Contributor

Yes, your hourly rate can be reduced so long as the reason for it does not constitute some form of legally actionable discrimination or violate the terms of an employment contract/union agreement. Unfotunately, due to the upcoming changes to the overtime law, many companies have taken this route. Accordingly, while seemingly unfair, it is legal.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, they can, unless you have a written employment (or union, or collective bargaining) agreement guarantying your salary. Otherwise, without a written contract, your employer may change or reduce  your salary at will (or even shift you from salaried to hourly, if they want). Many employers are doing this, to avoid salaried employees from getting an effective raise due to the change in overtime rules.


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