Results 1 to 6 of 6

Hybrid View

  1. #1
    Join Date
    Dec 2014
    Posts
    7

    Default Employee Rights After Position Converted to Hourly Due to Misclassification as Exempt

    My question involves employment and labor law for the state of: California

    My company is only a year old, so my job role was radically different from inception (which was before I started). The company, with the help of its lawyers, recently realized that my role should be classified as hourly and being salaried was non-compliant. Am I able to bring this to the Dept. of Labor or IRS for unpaid OT wages?

    Also, the company is calculating the base pay using 55 hours (40 hours + 10 OT hours = 55 hours) such that I would have to work 40 hours and 10 OT hours in order to maintain my current salary. Essentially, if I do less than 50 hours a week I will be getting paid less. I believe this is illegal but I would like to confirm here.

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Employer Converting Salaried Position to Hourly Due to Non-Compliance

    Take the issue up with the CA DOL.

  3. #3
    Join Date
    Dec 2014
    Posts
    7

    Default Re: Employer Converting Salaried Position to Hourly Due to Non-Compliance

    Quote Quoting Disagreeable
    View Post
    Take the issue up with the CA DOL.
    Can you explain? Which of the two issues I brought up are potential violations?

    Also I am actually one of 70 employees that were converted from salary to hourly, all for the same reasons and the same reduction in pay. Would me contacting the DOL notify the company of my personal involvement?

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Employer Converting Salaried Position to Hourly Due to Non-Compliance

    Am I able to bring this to the Dept. of Labor or IRS for unpaid OT wages?

    Of the two, the correct regulatory agency would be the CA DOL but you're several steps ahead of yourself. If they're voluntarily recognizing non-compliance and taking steps to fix it, they may also voluntarily pay back overtime. Before you file a complaint with anyone, see how it plays out.

    I believe this is illegal but I would like to confirm here.


    You are wrong. A reduction in wages, going forward, is not illegal. It is not even uncommon, when changing from salaried to hourly, for there to be an adjustment in the base pay to allow for potential overtime.

    BTW, the issue is not salaried vs. hourly; it is exempt and non-exempt. There is nothing illegal about paying a non-exempt employee on a salaried basis as long as they also get paid OT when worked. I understand that the issue is unpaid overtime, but for the benefit of future readers it's just as well to have the issue stated correctly. It's not that you were paid on salary; it's that you did not get paid overtime in addition to your salary.

  5. #5
    Join Date
    Dec 2014
    Posts
    7

    Default Re: Employer Converting Salaried Position to Hourly Due to Non-Compliance

    Quote Quoting cbg
    View Post
    Am I able to bring this to the Dept. of Labor or IRS for unpaid OT wages?

    Of the two, the correct regulatory agency would be the CA DOL but you're several steps ahead of yourself. If they're voluntarily recognizing non-compliance and taking steps to fix it, they may also voluntarily pay back overtime. Before you file a complaint with anyone, see how it plays out.

    I believe this is illegal but I would like to confirm here.


    You are wrong. A reduction in wages, going forward, is not illegal. It is not even uncommon, when changing from salaried to hourly, for there to be an adjustment in the base pay to allow for potential overtime.

    BTW, the issue is not salaried vs. hourly; it is exempt and non-exempt. There is nothing illegal about paying a non-exempt employee on a salaried basis as long as they also get paid OT when worked. I understand that the issue is unpaid overtime, but for the benefit of future readers it's just as well to have the issue stated correctly. It's not that you were paid on salary; it's that you did not get paid overtime in addition to your salary.
    Thanks cbg. I mentioned the IRS because I was under the assumption that they would also be interested in investigating because not paying OT creates tax issues. Also I am asking this so I can know what to do in case they do not voluntary pay back OT (which from what has been said so far, will not happen).

  6. #6
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: Employer Converting Salaried Position to Hourly Due to Non-Compliance

    Quote Quoting Weekend
    View Post
    Thanks cbg. I mentioned the IRS because I was under the assumption that they would also be interested in investigating because not paying OT creates tax issues.
    It creates no tax issues whatsoever. The company only deducts employee compensation actually paid. You include in your income only pay you actually receive. Until the company pays you for the OT, it is not a taxable event. The IRS won’t care that you were not paid OT, whether you were entitled to it or not. The IRS will care that the proper federal tax withholding and reporting for the OT is done once the company actually pays it.

    1. Sponsored Links
       

Similar Threads

  1. Job Duties: Promoted to an Exempt Position, but Still Doing Non-Exempt Work
    By vannirae in forum Employment and Labor
    Replies: 32
    Last Post: 11-05-2014, 05:44 AM
  2. Compensation and Overtime: Salary Exempt Employee is Being Treated as Hourly
    By meh2014 in forum Employment and Labor
    Replies: 14
    Last Post: 08-28-2014, 10:10 AM
  3. Compensation and Overtime: "Exempt" Employee Being Treated As Hourly Employee
    By cybrwzrd in forum Employment and Labor
    Replies: 4
    Last Post: 11-05-2009, 01:37 PM
  4. Compensation and Overtime: Hourly, then put on Salary (Exempt), then Hourly Again - Is This Legal
    By azsympitch in forum Employment and Labor
    Replies: 6
    Last Post: 09-07-2009, 09:24 AM
  5. Job Duties: Exempt Manager Forced to Perform Hourly Employee Duties
    By spiderpig in forum Employment and Labor
    Replies: 4
    Last Post: 06-23-2009, 03:14 PM
 
 
Sponsored Links

Legal Help, Information and Resources