Owners changed me from salary to hourly, but my hourly rate does not add up to my original salary
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Owners changed me from salary to hourly, but my hourly rate does not add up to my original salary
The ownership of my company converted all exempt salary managers to hourly
employees. However, based on a 40/hr workweek, my hourly salary does not add up
to my original salary. After reviewing this with HR, they shared that as an
exempt salary manager it was understood that there would be times I would be
working overtime. My new hourly is based on the assumption that I will be
working 5 hours overtime every week.
In order for me to maintain my same salary prior to the conversion, I have to
work a minimum of 45 hours a week.
Is it legal for them to convert my salary less based off a 40/hr workweek
because it is assumed that I will work the equivalent overtime to match my
original salary?
Asked on January 5, 2017 under Employment Labor Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Is your salary guaranteed under the terms of an employment contract, union agreement or something similar? Does this action in some way constitute some form of legally actionable discrimination or retaliation? If not, then you are an "at will" worker. This means that your comany can set the conditions of employment much as it sees fit. This includes whether to pay you hourly or salary, regardless of whether this results in a lower paycheck or not. In fact, an employer can increase/decrease a worker's wage for any reason or not reason at all.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
It is completely legal unless you had a written employment contract which guaranteed or locked-in your pay. In the absence of a written contract, as one consequence of the doctrine of "employment at will," your employer can change your pay at will: increase it, decrease it, change from salary to hourly or vice versa, etc.--the employer has free discretion to make any change it wants and to pay you anything it wants.
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