Quote Quoting llworking
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This site explains the different between exempt and non-exempt pretty well:

http://www.cpapracticeadvisor.com/bl...empt-employees
Thanks for the link. So OP was a salaried supervisor employee that was nonexempt because he does not fit into one of the exempt categories and so he was entitled to overtime pay under the FLSA. Now OP had his title changed, changed from salary to hourly employee, had his differential pay dropped and is not allowed overtime and remains nonexempt.

I assume that OP means that company policy will not allow him to work overtime but if he did work overtime, he would have to be paid for it since he is still nonexempt.

I think I understand it now. Thanks. I'd be updating my resume about now.