Human Resources/hourly to salary


My company decided to move me from hourly to salary, but did not asked me if I wanted to or not. For one, because of the move I took about $800-900 a month pay cut since  I now do not get paid for the OT I usually put in.  Is this a common practice and if it even legal?

They can only move you from hourly to salary exempt if your job warrants this move. That means it has to qualify under the exempt standards which are put out by the Department of Labor. It is illegal to not pay overtime if you do not qualify to be exempt.

There are several exemptions allowed under the fair labor standards act.  It is up to the employer and the employee to determine if the job is overtime exempt or not. However if they miss-classify an employee the DOL will come back and make them pay fines, penalties and all the back overtime and taxes.

You can call the department of labor in your state, explain your job to them and ask them to classify your job. If it is miss-classified they will contact your company and you will have to be paid your overtime.

What you will need to tell the Department of Labor is that you have recently been classified as exempt salaried and you believe that you should be non exempt can they help you properly classify your position.

They use the terms exempt and non exempt instead of hourly and salaried because you can be paid a salary and still be paid overtime if you are non exempt.

If you need the contact information for your local Department of Labor let me know in which state you live and I can get that for you.


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Shirley McAllister, CPP, PHR


I can answer questions pertaining to Compensation, Health Benefits, Retirement Plans, Payroll,Payroll taxes, Employee selection, Employee Termination, Training, and Employee Incentives. I have offices in U.S., Canada, UK, South Africa,Australia and NZ. I am most confident in the U.S. and Canadian but have knowledge of the internationals. I do not have extensive knowledge of South Africa, Australia and New Zealand. I do have some Human Resource Knowledge in those areas. Please do not ask me homework questions, I do not have time to answer them.


I currently hold both the U.S. and Canadian Payroll Certifications. I currently hold the SHRM PHR certification. I have worked in the Human Resources area with high emphasis on compensation and benefits for 25 years at the same company. My company is an international company and I work with our International offices whenever there is a Human Resource area needing addressed. I volunteer on the American Payroll Association hotline and have for the last 10 years or so. I answer many questions each week for other payroll and HR professionals, mostly on taxes, benefits and compensation issues. I have been the trustee for our 401K plan for Retirement benefits and our 125 Cafeteria Plan for Health Insurance benefits.

SHRM, National APA, National DOLEA, State National Mentoring Network I.O.M.A. Advisory Board


Boise State University Human Resource Certificate Program PHR through SHRM CPP through American Payroll Association Payroll Administrator and Payroll Supervisor certification through Canadian Payroll Association Published writer of Payroll and Benefit articles in a payroll Publication 25 years experience in an International Company

Awards and Honors
Citation of Merit 8 years in a row for hotline service for A.P.A. Honor Award for child mentoring service through RSVP and National Mentoring A "Pat on the Back" award for outstanding leadership as a Youth Group Leader by "The Salvation Army." Runner up for Employee of the Year at my Company twice and Employee of the month 4 times.

Past/Present Clients
I used to answer questions on when they had a similar quesition and answer section. I volunteer for APA hotline I also belong to several HR forums when I often answer questions

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