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Jan12

Converting salary employees to hourly employees

In Virginia, can we take an exempt salary employee and convert them to an hourly worker? Job duties would remain the same. Is there such a thing as an exempt hourly worker? If a workers job duties remain the same can you change their status year to year, (ie salary to hourly and back to salary?)

Thanks for posting a great question! There is no such thing as an exempt hourly employee. The first requirement of an exempt employee under the federal FLSA, or Fair Labor Standards Act, is that the employee must be paid a weekly salary, and that weekly salary must be at least $455. Hourly employees are always entitled to overtime when they work more than 40 hours per week.

In some cases an employer can take an exempt employee and permanently change their status to hourly employee. This can be done without changing the employees duties. However, if the employer switches the worker back and forth from hourly to salaried exempt, the state and federal enforcement agencies (including the U.S. Department of Labor) are likely to view this as an illegal attempt to avoid paying overtime.

Our suggestion: before you change this employee from exempt to hourly, check with the U.S. Department of Labor at www.dol.gov to make sure you are doing this in a legal manner.

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This entry was posted on Monday, January 12th, 2009 at 10:14 am and is filed under
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4 Responses to “Converting salary employees to hourly employees”

  1. Wm Kelley Says:

    I live in California. My Question is, What is requirement for changing Hourly employees to Salary employees. Does it matter what type of computer equipment you have to do your job. Is their Labor laws whic spell out what you have to do. Can your job discription be changed to make it possible for the change.

  2. Caitlin Says:

    Hi Wm! An employer can put any hourly employee on salary. However, that employee is still entitled to overtime, in most cases.
    Under both federal and California law, a salaried employee must meet certain criteria to be exempt from overtime. The decision is based on the employees primary job duties, not the job description or the title. The federal guidelines are below. The only difference is that California law requires a slightly higher minimum weekly salary for exempt employees. Search our archives, and you will find a wealth of informtion on exempt employees. HTH and thanks for reading the blogs!~ Caitlin

    http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17a_overview.pdf
    http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17e_computer.pdf

  3. Jim Says:

    Pharmacist are exempt hourly employees.

  4. Caitlin Says:

    Hi Jim! Pharmacists can be exempt hourly employees under some circumstances, but they can also be exempt salaried professionals or non-exempt hourly employees under federal law, depending upon the situation. The job title and job description alone do not determine exempt or non-exempt status. There are several other factors. And, California rules differ from those in other states. HTH, and thanks for reading the blogs!~ Caitlin

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