If one is paid salary can we place that person back to hourly and if so can I reduce the pay

(Question moved from Introductions to more appropriate category in order to get more exposure to those best able to answer the question.)

Yes you can, first to be truly on salary they would have to be paid over the Federal or state required min to be on salary, I forget the exact amount, it was near 26,000 a year to legally be salary and not have to be paid overtime. So first you have to decide if they were really on salary legally to start with, or do you owe a lot of back overtime pay to them.

But unless they have a contract or uniion agreement, you can change their pay status, change their pay amount when you want, changes in some benefits can also be changed, insurance and so on.