[USER]

My partners employer just recently changed him from hourly to salary pay. He was getting a lot of overtime and the salary they offered him is now $27,000 less than he made last year (net).

They didn’t really give him a choice on changing from hourly/salary and just kept telling him that he was “going to love the change.”

He found out on 12/31/24 the actual numbers and it was to go into affect the next day at the beginning of the new year.

He has gotten 2 checks so far this year and they have not been for the same amount.

I thought with salary the amount would be the same each pay period. Its deflating to think that after working for the company for 22 years they would decrease his income like that.

What do you all advise that we do? Should he look for employment elsewhere?

I feel like this is something we should be able to negotiate, but does anyone have advise of the best way to go about this?

[Jake]

I’m salary as well, mine adjusts minimal check to check by pennies. But switching from hourly to salary I would definitely negotiate a higher salary if still working the same amount.

Also, did something change in his position for them to switch you from hourly to salary?

There is specific requirements to be exempt from overtime.

[Kandi]

Check the pay period. The first check he received may have been for his hours at the end of December and the next check may have been at the new pay rate which would explain the difference.

I would talk to the employer about the pay rate and how it compares to las year.

Make a case for a higher salary. If they say no, then look for another job.

[Erin]

Not paying overtime, not working overtime. Make sure your husband stands his ground.

[Jennifer]

My husband covers our health insurance and it’s only taken out 1x a month and it causes the checks to be different.

Also did the first check of 2025 cover any hours from 2024?

They may have paid him for 2024 hours and 2025 salary for check 1. Then check 2 would be salary only.

You need to look at details not just net.

[Lisa]

From employed perspective, they make these kinds of changes not bc they’re trying to screw employees over but more for employment law violation exposure.

If they were found that your hubby’s role is truly an exempt role, but it’s been non-exempt, then they have to pay a hefty fee.

Having said that, if your new salary is too low and you can get a job elsewhere for a higher salary/total compensation, move jobs.

[Matt]

What is the apples to apples comparison of 2024 vs. 2025 income when overtime is not factored in? He may not have received a pay cut at all. He may have just lost the opportunity to receive overtime.

If that’s the case, he should just stop working at 40 hours each week and pick up a side hustle to make extra cash.

This switch from hourly to salary sounds like a way to avoid paying overtime.

[Leah]

He could try negotiating the amount he was previously getting as overtime into his new base salary, but that is unlikely to work.

The company moved him to salary for a reason – for them to save money without having to pay overtime.

The benefit they are trying to pitch to him is that he won’t have to work extra hours and during periods of time that are slower, he’ll still get paid a full week’s pay and not be subjected to a decrease in pay in those cases.

However, that rarely seems to happen, so this is totally for the company’s benefit.

If he’s looking to be making the same as what he did with his overtime pay, he should start looking for a new, overall higher paying job.

[Tim]

I would reduce my extra time to be more in line with 40-45 hours per week and advise his manager that due to the reduced overall compensation, you’ve had to seek external employment to make up the difference so you will not be able to go above and beyond the expected 40 hour work week.

[Nancy]

He needs to sit down and talk to the boss and ask for the full explanation. Like mentioned above is he getting more benefits he’s not aware of?

Company matches? Insurance changes? 401k?

Eligible for a bonus?

I agree after 22 years it seems odd they’d just cut him and not be clear on the differences. He needs to ask.

If he’s been hourly his whole life they may not have explained the full changes, or they did it so quick and it’s a different world for him, he didn’t follow it.

Especially since they said “you’ll love it” If it was a straight up cut, they wouldn’t be saying that

Hope you find out some better news

[Houston]

Dang, that’s not cool.
As far as the paycheck variation goes, it could be that insurance, or some other deduction, gets paid that pay period.

Also, could be because the switch.

[Carrie]

My husband’s salaried check varies by the benefits pulled that pay – deductions for vision and dental only happens once a month instead of every pay,

[Chris]

Well well… Okay “If your employer previously paid you an hourly wage as a non-exempt employee and switched you to a salary and a classification as an exempt employee, it is a red flag if your job duties remain the same.

Employers who cannot explain why the classification changed will likely be found to violate the FLSA.” (Fair Labor Standards Act).

Have him go to HR and have him tell them there is a violation to the FLSA.

[Carrie]

Oh, I should also say he needs to talk to his boss about what the “ benefits” are…it could be “Flex Time” supposedly so that if he works 50 hrs one week he gets to work 30 the next.

Which I really had to push myself to take when I went from hourly to salary.

[Kirsten]

If his role hasn’t changed, then they have misclassified his position. This is illegal and considered wage theft by the company, the DOE may be interested in hearing about it.

Salary vs hourly are technically just methods of payment. Most of the time (some exceptions) a salary employee is Exempt classification and hourly is Non-exempt.

An exempt employee means just that, typical labor laws don’t apply.

They don’t get overtime pay, they don’t have to take an unpaid lunch break, etc.

(they also should get paid for the whole day if they do any amount of work that day.

Employers CANNOT just spin the wheel and pick which classification they want! Please look up exempt employee requirements online.

An exempt employee makes independent business decisions, i.e- a general manager who decides to hire or fire employees, or may have an administrative or sales role, if they meet the qualifications.

There is a salary minimum wage (federal and some states are higher) that is diff from hourly min wage. This is all online, I suggest he research it so he can see how this may apply to his specific situation.

If the company is out of compliance, I’d approach HR or management. Likely don’t have HR if they’re pulling this stunt. Explain the mis-alignment and ask for what he wants ….to go back to hourly?

To stay salary with additional responsibilities (incl new title and pay raise).

I would never threaten but if they know that YOU know it’s illegal, that should be some motivation for them to change it.

If they won’t change it or push back, start looking for another job. Please keep careful records of hours worked each day since the change, lunch breaks, OT hours worked and collect proof in a NON-work email.

I’m 100% petty when people cheat me so if it’s going downhill, I’d absolutely file a complaint with DOE to see if he can get repaid for the lost OT he would be due.

[Dusti]

Does his salary position have a stipulation he is required to work over 40 hours a week?

I’m not an expert but fairly certain his company is still required to track his overtime and compensate him more if he is consitently working over 40 hours a week.

if they refuse he should refuse to work all the overtime they are stealing from him.

[Jacqueline]

Could be adjustment in deductions like medical, taxes, 401K. Once settled it will be regular. That has happened to me as a new hire.

I wonder if switching to salary is triggering the same thing.

Have you looked at both checks for deductions? I’m assuming the pay rate was the same.

Regardless it will be in the pay stub a break down so there shouldn’t be any doubts.

[Angie]

The checks may be different as they transitioned pay periods if hourly and salary are on different calendars. Or if the change was made effective in the middle of a pay period.

Normally with this type of classification change the employer will take the previous full earnings into account when setting the new salary.

He should definitely bring this up sooner rather than later. They don’t always match exactly but usually try to not make the employee experience such a large loss for no longer receiving 1.5× OT opportunities.

The benefits is usually more flexibility in your schedule, maybe more or unlimited PTO, but only if it’s a good employer that’s not taking advantage.

[Walter]

When I was in this situation (came with a promotion, not a reclassification) I shared the differences with my leadership and asked if they could adjust my salary accordingly.

As a Director, I’ve had the same situation and gave the employee an increase to accommodate this adjustment from hourly to salary.

If they’re a good employer they’ll work with you, as the intent should be to keep their employees happy and effective.

If they say ‘no’, then unfortunately it may be time to look elsewhere.

In the meantime, I’d suggest your hubby reduce his hours since the business should also feel the ‘pain’ of this decision.

I’m in IT/Pro Serv, so the above may or may not be the best recommendation in other markets, but it’s suited will for me and the employees I represent.

[Greg]

I’ve been salary and it always been the same weekly.
He agreed to and hourly wage, I’m not sure they can just change him to salary that he didn’t agree to.

Unfortunately employers don’t appreciate their employees these days.

He could tell them he’ll work the hours he’s paid for since they cut his pay but they could let him go since they don’t seem to care anyway

[Rich]

I’m salary as well. Have been for over 10 years. The benefits make a salaried role so much better than contract or hourly.

With matching for 401K / Roth and After-Tax, along with health insurance, PTO and bonus.

It all translates to far more than the equivalent hourly. Last year alone, we had 90K+ in surgery and hospital stay costs covered by insurance with low deductible.

If he is getting no significant benefits, then he should be able to negotiate for more or look elsewhere.

When my wife returns to work, she would do contract and earn more hourly but get none of the benefits. Make an extra effort to save for retirement and such.

[Rachel]

He could likely file for unemployment for the difference. Especially since he didn’t sign anything and was a unilateral decision to decrease his pay.

[Dre]

Personally I would look elsewhere. I don’t believe in going back and forth with an employer about money.

They basically tried him, hopefully he can land a new role with higher pay than before.

Even if they try to match, you must leave.

[Shannon]

If he does remain salary, remember that they are now paying him for a certain amount of hours a week. At my job it’s 35. Salary means that sometimes you might have to work more.

But that shouldn’t mean every week. If it does, that’s abuse of your time and not really a salary job or they need to hire someone else.

Or like someone else said, ask about flexing that time

[Stout]

There’s a minimum amount that someone needs to be paid to qualify as salary. Around $58,000.

Hopefully he’s making more than that if they are forcing him to be salary

[Nate]

I’m salary and my checks vary by a few cents each pay period. Are you talking big dollars or what?

[Author]

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