If you have a signed contract for a set salary, can you tell employee you want to pay them hourly due to lake of money coming into the companey?

Wildsporty

You can change a salaried position to an hourly position there are no restrictions on making any employee hourly.

The salaried exemption is an exemption from overtime in the FLSA act. (Fair Labor Standards Act).

You must be given notice of the change before any work has been done at the new salary to give you a chance to refuse to work at the new salary and find other employment. You must be paid your currect wage for any work that has been done before the new wage goes into effect.

If you go from salaried to hourly you must also be paid overtime at time and a half your regular wages.

Do you know if your amount is being cut or only your hours? Your wages could stay the same but the hours reduced. This is why most salaried positions are converted back to hourly .

If your salary is not being cut you can find out by dividing your current salary on your contract by 2080 to find your hourly wage. If you hourly wage is the same your salary is not being cut just your hours.

This is saying I do not have enough work to keep you busy all the time so I am converting the position to hourly to accomodate the slow down of work. It is legal to do this as long as you are told ahead of time.

Shirley