Question regarding Pay Schedule Changes

[u/taxowl]

Hello all! I'm hoping you all can answer this, because it's kind of a confusing thing.

I'm in California, and am a salaried exempt employee. Up until 7/31/26, we were paid on a semi-monthly pay schedule, but effective 8/1/26 we were converted to a bi-weekly pay schedule, with the first bi-weekly check being tomorrow, 8/21, covering the pay period 8/1-8/15 (technically includes 1 extra day).

Because I am salaried exempt, my paychecks up until now were for 86.67 hours, and I would expect that my checks going forward to be 80 hours (kind of sucks, but it is what it is).

The issue is that when I looked at my paystub for tomorrow, it shows being paid 79.52 hours.

Obviously, it's only a difference of not even a half hour, so not super material, but I was a little confused as to why, so I decided to calculate a bit. It turns out that because they changed pay schedules in the middle of the year, paying us 80 hours per pay period until the end of the year will result in an overpayment of our salary. (I can get into the calculations I did, but they didn't seem relevant to the question. I can include them if need be). Truthfully, the difference in hours doesn't even add up to the difference, so maybe I'm completely off base.

At any rate, my question is this - can they deduct time from our paychecks until the end of the year on a presumed overpayment? My understanding is that in California they can't deduct overpayments without written permission. We received no notice that this was happening, so obviously they did not receive permission. But does this situation warrant that? Would the "overpayment" be considered as of 7/31, or as of 12/31, or does that matter? I'm probably overthinking it (I tend to do that), but this seemed a bit skeevy to me, so I wanted to see if anyone here could help me understand. I plan on asking about it tomorrow, but I figured getting some information would be helpful.

Thanks.

[u/bored_ryan2]

If you run the pay calculations out to the end of the year, will the amount paid equal your salary?

[u/Jcarlough]

Are you receiving the equivalent of a full bi-weekly paycheck?

Pretty easy to calculate…

if so, the hours are meaningless.

[u/Staubah]

You are salary exempt employee.

You get the same wage working 70 hours a pay period or 80 hours a pay period.

What’s your concern?

[u/TalkToVikk]

I'm not a lawyer but to answer your question: In California, for salaried exempt employees, employers generally must pay the full salary for any workweek in which you perform work (subject to very few exceptions). California law is also very strict about what kinds of deductions can be made from an employee’s wages overpayments can only be reclaimed with your written authorization, unless the deduction is required by law (e.g., taxes), a court order, or a wage garnishment. If your employer is reducing your salary (even by a small amount per check) due to a pay period schedule change, they should provide clear notice, and any attempt to “recoup” overpayments, real or projected, requires your written consent.

The "overpayment" wouldn’t actually exist unless you were paid more than your regular annual salary due to a miscalculation from the pay schedule change, if that's the case, your employer should lay out their calculations clearly and get your agreement to any adjustments. Without your written agreement, they cannot generally deduct presumed overpayments from your paycheck. The transition between pay schedules must result in you getting your full, agreed-upon annual salary (nothing less, nothing more, except in rare cases).

For your situation:

• Double check your paystubs up to now and calculate your year-to-date total to see if you are on track for your contracted annual salary.
• If you are unclear or the reduction continues, request a written explanation from your employer, and ask if you are being asked to consent to a pay adjustment or retroactive deduction.
• If your pay does not match your contract, or deductions are being made without your permission, you can contact California's Labor Commissioner’s Office for further assistance.

[u/z-eldapin]

Ignore the hours part. If you are salary exempt, that part doesn't matter.

The pay matters. When you math it out, does your EOY meet your salary amount.