
Quoting
cbg
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.