If I’m currently salaried and will soon be eligible for overtime, can I be switched to hourly so that I will need to work 40 hours regular pay and 5 hours of OT to make what I currently make?

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If I’m currently salaried and will soon be eligible for overtime, can I be switched to hourly so that I will need to work 40 hours regular pay and 5 hours of OT to make what I currently make?

Is that legal? I mean is it fair that I have to work 45 hours a week now hourly to make what I was making salary?

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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, it is perfectly legal--not fair, but legal--unless you have a written employment contract which specifies that you are paid a salary. Otherwise, without a contract, your employer has free discretion to change how (and/or how much) you are paid at will, and can switch you from salaried to hourly if they want. What you report is fairly common: it is a result of the change in overtime rules, with companies electing to switch salaried staff to hourly to control payroll costs.


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