Does FLSA have any regulations that prevents you from changing Status from Salary Exempt to hourly

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Originally Posted by janet.hannon

Does FLSA have any regulations that prevents you from changing Status from Salary Exempt to hourly

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No. You are allowed to pay anyone hourly. The salaried exempt it just what it says an exemption from the FLSA. There are many regulations in order to qualify for the exemption, but if the company wishes to pay the employee as hourly and pay overtime for all hours over 40 than they can do that.

Sometimes a company will do an audit and decide that the position really does not meet the criteria for the exemption any longer or it is on the borderline and just to be on the safe side they will reclassify it as hourly.

There are a lot of DOL audits going on right now on misclassification and many employers are taking a second look at how they have classified employees.

The one risk that is there is that the DOL may come back and say this position was misclassified as exempt and it was hourly to begin with and make you go back and pay the overtime for this person.

If it is really an exempt position and you just wish to pay it as non exempt hourly there are no penalties for doing so.


Shirley