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Can I reclassify a currently exempt employee as non-exempt and pay them only hourly for time actually worked? Some weeks this may be zero and others it may be 8-12 hours.
Their job duties would still qualify them as exempt, but we cannot afford to pay them even the minimum weekly rate for exempt employees and do not want to be subject to the rule requiring employers to pay a full week of work even if only one day is worked.
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| It is always ok to classify someone as non-exempt. In fact, even the president of a company could be classified as non-exempt. The problem is when classifying someone as exempt - you have to be very careful that the employee meets all the requirements for exempt status.
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We just recently adjusted several employees (servers and kitchen lead cook) hourly wage to meet currently industry standards.
I did research and the law does not prohibit you from changing an employees hourly wage but it recommends that your pull the employee aside and provide an explanation as to the reason.
We explained to the employees that our business does not support the hourly wage they were being paid and since they did not have added responsibility to merit being paid above the standard industry wage… we were informing them they would see an adjustment starting the next payroll.
I did find out that you can not go back and get back pay from employees but going forward you can change their hourly rate...their is no law prohibiting the change.
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