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  1. #1
    Join Date
    Sep 2016
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    Default Can an Employer Take You Off of Salary Without Notice

    An employee has been working for a company for almost two years. The employee has been paid throughout that time a salary based upon 40 hours per week. The employee's most recent paycheck was less than it usually is, and when he asked about why he was told that his employer had only submitted 70 hours for the prior two weeks. When he asked his employer for an explanation, the employer said that he's an at-will employee and thus can be changed from salaried to hourly without notice. Is that correct?

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can an Employer Take You Off of Salary Without Notice

    Being an at-will employee means that your employment can be terminated without cause. It does not allow an employer to change the terms of your employment without notice, but it does allow the employer to change them prospectively.

    There are state and federal regulations that affect whether an employee may be paid a salary without receiving overtime pay, or whether they must be paid an hourly wage plus overtime. But those laws don't stop an employer from voluntarily overpaying an employee for hours not worked. It's not clear if classification issues would apply to the employee's position, but even if they did they would only affect compensation beyond the 40 hour work week.

    The employee may have a claim for the wages not paid based upon changes in the compensation structure made without prior notice but, if the employee is at-will, would not have any basis to object to being made hourly from the point of notice going forward.

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