QUESTION
Can an employer change an employee of 11 years from salary exempt status to an hourly non-exempt status.
Asked on Sep 12th, 2011 on Labor and Employment - Ohio
More details to this question:
By changing to non-exempt, I would only receive half of the bonus in the bonus structure as opposed to the current 100% for exempt employees. Also, this is not a company wide change for all employees on salary to hourly. I am in the banking/financial industry. My work quality has not justified this downgrade as nothing negative has been said. They wish to talk to me of my job duties as they have increased/changed over the years. Can they do this?
1 ANSWER
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Yes. Generally all employees must be paid hourly, including overtime, unless they qualify as "exempt" from the overtime pay requirements of the Fair Labor Standards Act (and similar state laws). Even if a person/position would qualify as "exempt," the employer may choose to pay hourly. A change from "exempt" to "nonexempt" is not a "downgrade." It is simply a change in payroll status.
Answered on Sep 13th, 2011 at 12:54 PM