Switched from salary to hourly without knowing...

[blacke]

What is the name of your state? CA

I have been working for a company for two years and being compensated with a salary. I switched divisions, with the same salary, and worked for 4 months when worked slowed down (actually, contracts were held up). I was asked by the VP to see if there was work available in my old division for me. Unfortunately, work was scarce all over and I went for approximately two weeks with no chargeable time. To my astonishment, my paycheck came and I was shorted 40 hours on the first check and then another 58 hours on the next check. After a few phone calls I found out that the VP had switched me over to hourly, without my knowledge. The switch happened just after a job that required an intense eleven days of 12 + hour days, with no overtime compensation. Is this legal? What is my possible recourse? Thank you for your time.

 

[cbg]

Is it legal to change you to hourly? You betcha. Any employee can legally be paid on an hourly basis. They can pay the CEO hourly if they want to pay the overtime. In fact, the laws on who can and cannot be paid on an exempt basis were changed/clarified last month; they may not have had any choice if the news laws showed that you had been misclassified.

However, in most if not all states, if the change results in a pay decrease they are required to give you advance notice of the change. Granted, in all but two states that I know of, "advance notice" can be a sign on the door as you walk in that says, "Effective today the new rate is...". As long as you receive notice before you work any hours at the lower rate, that's legal in most states. To the best of my knowledge that includes CA.

They also must pay you overtime for any hours worked over 40 in a week (or, in your state, over 8 in a day) if they are going to pay you on an hourly basis.

If I were you, I'd attempt to work this out with them before going to an outside agency. However, if you are unable to work out an agreeable arrangement as to the change in your pay, you are entitled to file a complaint with the CA DOL.

Keep in mind that outside of the overtime, which is unquestionably owed to you if they are paying you hourly, the most you would be owed would be the difference between your old rate and the new rate for the time before you were notified. Once you were notified of the change, and you were notified with the phone call you said you made, the new, lower rate takes affect and any time you work from that point on can legally be at the new rate.