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Changing Employment Status - Salary to Hourly

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  • Changing Employment Status - Salary to Hourly


    I work for a consulting firm and one of my clients are doing a FMLA audit. Most employees were hired as salaried employees and not classified as exempt or non-exempt. Most of their offer letters extending offers to employees as "salary" employees. Now that they are looking to re-classify staff - they're looking to change employees from salary to hourly. The formula they're using is if employee was hired at $40k/year we are taking $40k/year and dividing it by 50 hours a week to come up with their hourly rate. Now if the person works 50 hours a week they're still making the offer letter amount however if the company slows and no overtime is available they're now making less than there offer letter. Is this legal?

  • #2
    Yes, they can restructure the hourly rate any way they want. And, BTW, you're talking FLSA (Fair Labor Standards Act) here, not FMLA (Family & Medical Leave Act).
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