Can we change our hourly employees to salaried? If so, what is the minimum pay for salaried employees in California?
An employer may pay employees who were previously paid an hourly wage a fixed salary and retain the nonexempt classification, but should be aware of laws surrounding overtime and meal/break requirements ensuring they are not in violation of the Fair Labor Standards Act (FLSA). It is possible to pay nonexempt (hourly) employees on a salary basis and some employers choose to do so for ease of payroll administration. However, this does not release the employer from an obligation to pay one and one-half times the equivalent hourly wage for any hours over eight in one workday (in California) or over 40 hours in one workweek. Even if you pay nonexempt employees a salary you must still pay them overtime for any qualifying hours.