I was a salaried employee and my company switched me to hourly effective immediately. Is this legal?

Question

My salary was cut substantially. My employer changed my position in the middle of a pay week and gave no notice.

Answer 1

Again stated but it depends on which state you are in.
But I do know in most states this can not be done in the middle of a pay period and can only take effect upon a new pay period.
He can also not go back and apply the reduction for hours that you already worked.

Answer 2

Considering that your pay and position where changed without notice, I would think that something illegal has taken place. However, it may all depend upon the contract by which you're employed.

Have your duties changed? If they're the same, but you're getting paid less for the same amount of work, something's up. It may be that the company wishes to terminate you prior to hiring someone else, but can't legally do so due to your work record. Hence, they may make things so unappealing to you that you quit your job of your own accord, thus freeing them to bring in someone else.

Considering the pay reduction, you could always allow your work to reflect a similar reduction. Either that or you could look for a better job.

Answer 3

Have you asked you supervisor for a reason?

Perhaps the company went through an IRS audit which uncovered a class of workers were misclassified as "exempt" salaried, when they should have been "non-exempt" (salaried/ hourly). Perhaps it was due to your job performance; perhaps the company is realigning wages due to a downturn in business, or other factors.

I would recommend that you talk to you supervisor and get the facts. Having the truth, rather than speculation, will provide answers as to your next step - leaving the company, or asking what you need to do to get back to where you were, and possibly beyond.

Answer 4

To change you from hourly wages is totally legal, and is up to the company's discretion. To change your position without prior notice is not. Consult a employment legal authority and ask them to investigate. Or better yet, and AFTER you talk to your boss about the changes, you then get a lawyer and sue them for your old position and old pay back. They cannot do that to you or anyone else in the company without notification.

Answer 5

It depends on the laws in your state, but yes, it's legal. If the company does something like that and the employees don't like it they can all resign -- which is why companies don't do things like that normally. If there are union contracts involved (being salaried it sounds like there's not), then different rules apply and it might result in a 'job action' on the part of the union.