Altering an worker’s compensation construction from a set wage to an hourly wage is a legally permissible observe beneath sure circumstances. This sometimes entails reclassifying the worker from exempt to non-exempt standing beneath wage and hour legal guidelines, that means they change into eligible for time beyond regulation pay. For instance, a salaried advertising supervisor could be transitioned to an hourly price for a project-based function with clearly outlined hours.
This shift can supply benefits for each employers and workers. For companies, it permits for better flexibility in managing labor prices, notably during times of fluctuating workload. Workers, then again, might profit from incomes time beyond regulation compensation for hours labored past the usual workweek. Traditionally, the authorized framework surrounding wage and hour rules has advanced to make sure truthful labor practices and shield workers from exploitation. Understanding these rules is significant for each employers and workers.
