My boss informed us last week that our entire department is switching from hourly pay to an exempt salary, and there’s no raise at all. With the loss of overtime, it feels like everyone’s facing a big pay cut. I always thought being salaried meant you’d get compensated for those extra hours. Is it really legal for them to make this change without us having to sign anything?

likehelpful
Posting as :
works at
You are currently posting as works at

Pretty sure as long as they give advance notice you can either choose to stay or go, no legal issue.

They just can’t backdate by switching it to salary for hours you’ve already worked.

helpful

It's probably legal, it's a stock corporate maneuver. What they're doing is legal as long as they notify you, at that point if you show up for work it's considered that you accepted it without you signing anything. The new arrangement would also have to meet legal requirements under the FLSA. You might want to do some research on that or talk to an employment attorney to get the full picture of your legal options. Of course, it might make more sense to use it as inspiration to find a better job.

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