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My position is turning from salary to hourly. Should I be worried?

Category: Other

mj'smommamj'smomma


I was hired into my position 5 years ago as a salaried employee. HR has now decided to make my position hourly. Every employee with my same or similar position is being affected. How will this affect me? What benefit is the company getting out of this? What concerns should I have and address with them? I really don't care about OT, as I work 40 hours every week - no more, no less. I feel like I'm being "demoted" even though they swear up and down that is not what's going on.

Smiling
Smiling

Salaries vs Hourly positions are managed by a federal law called the Fair Labor Standards Act.

There is a "test" you do for each position that determines if you are paid "exempt" (salaried) or non exempt (hourly).

The HR dept probably did a review and determined that this position was misclassified and needs to reassign it to non-exempt status.

Ren
Ren

There are laws that determine who can be on salary and who has to be paid hourly. The company has probably done a review and found that your position should be hourly. There's really not much difference for you, if you never work OT. Check with your HR department to see if any of your benefits will be affected--pension, vacation, insurance, etc.

Common Sense
Common Sense

Relax. I'd wonder if they would start giving me fewer hours, but it's hardly a demotion...just a change in pay structure.


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