I started our with my company as an hourly employee. I was transfered to a Project Management type position and they converted my hourly rate to a Salary Rate. (Hourly X 40 hours= Salary). The main office is in Indiana and the Indiana Dept of Labor got on to them because my dept's duties had changed and they said we should not be Salary Exempt. So they gave us the option of going hourly or Salary Non-Exempt. They gave us to forms, one to go to Hourly, the other to go to Salary Non-Exempt.
My current Salary was converted to the accurate hourly rate (Salary / 40 hours= Hourly) on the hourly form and it also stated that anything over 40 hours per week would be OT.

On the Salary NE form it was different. They stated that they will pay me for 40 hours a week plus 10 hours of OT. It stated that anything over 50 hours would be OT. It also said that no how many hours we work under 50 we will be paid for the 40 hours + 10 hours OT Salary rate. BUT here is the kicker....
Where it said what I would be paid it had what my 40 hours rate was and what the 40+10 OT rate was (the one I would be paid). But the 50 hour pay was the same amount as 40 hours at the hourly rate on the other sheet.

Example: Say the hourly rate is $10 an hour. So for 40 hours a week it would be $400. But on the Salary Non-Exempt form it would say my compensation for 40 hours would be $291 and with 10 hours of OT included it would be $400.

Is this legal?

I know what they are doing, they want to be within the law, but still get 50 hours a week out of us without spending more money on us.

Can they do this?

FYI: I went Hourly because I didn't like how this sounded; But they also said they reserve the right to change employees to Salary Non-Exempt if they want to.

Not exactly - you can read about the rules at: http://www.payroll-taxes.com/articles/fluctuatingWorkweeks.html

I moved to Ky to work as a 1005 commissioned employed with a local mortgage company almost 3 years ago. I was just terminated from my job on Friday due to what the company called a poor leadership decision on my part. I had a trainee, while i am still paid 100% commission, and this trainee had a lead/customer that he attempted to contact 3 times. He never had any luck so I took the customer info and tried contacting them via email and phone messages. Finally after a week, the customer contacted me and wished to do business with me. After almost two months of work on helping her with her mortgage refinance, we were ready to close on Friday and my boss decided to fire me for not giving the loan to the trainee. Is this a fair termination? No, there is nothing in the a handbook that says I have to do this. He felt I lied, mislead and that it was not my loan to take the commission for. Also, we work inside an office, what laws are there for being 100% commission and to working 60+ hours per week, given semi management role but still being only compensated by my own sales? Thanks

I work in Kentucky and have recently signed up to go back to school in January. The company I am employeed with has stated that I will need to be moved to a different department because I won't be able to be at work 8 to 5. I'll have 3 hours where I'll be in class, the company wants to put me back on hourly and reduce the amount of pay I receive. Can they do this legally?

Thank you

Yes, they can.