changing a salaried employee to an hourly employee

delihr

Are there any rules/laws around this kind of change that have to be observed?

delihr

There is also a title change involved.

TXHRGuy

The biggest concern is the employee then making a demand for back overtime pay.  Are you making duty changes also or was this person simply wrongly classified or...?

IT HR

TXHRGuy is absolutely right. The biggest thing to worry about, especially if the person was just wrongly classified, is the person coming back to say they should be entitled to overtime pay for all the hours over 40 that they have worked in the past. 

Another thing you have to consider is now the person will either have to clock in and out or use a timesheet.  Make sure he/she understands how and where to do this and the rules (what your policy is) surrounding making up hours if the person needs to come in late, leave early, etc.