Salary to Hourly

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Salary to Hourly

Should I be concerned that I’m being switched from Salary to Hourly? I feel like
this is a demotion. I’m in Texas by the way.

Asked on August 4, 2017 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Whether you should be concerned is something we cannot comment on--it depends on your situation, your relationship with the employer, etc.
But we can say that from a legal perspective, this is NOT a demotion: hourly vs. salary is just a matter of how you pay employees--it has nothing to do with how (or how much) you value them. Legally, other than in calculation of wages (and potentially, eligibility for overtime) there is no difference. The company may be doing this to be better compliant with labor and wage law: many salaried employees are not actually exempt from overtime because they don't meet the criteria for it, such as the administrative employee, professional employee, executive employee, etc. tests or criteria (which you can find on the U.S. Department of Labor website, under "overtime"). That means that some salaried employees should be paid an overtime premium when they work more than 40 hours in a week; but it is more awkward to track the time of and calculate overtime for non-exempt salaried staff than hourly. So if your position is one that may not be overtime exempt, your employer may be making you hourly to facilitate wage law compliance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption