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Yes, on the federal level, an employer can change the pay period without notice (subject to the constraints I listed above.) There are a few states which require employers to give written, and advance notice of payroll details and that includes prior notice of changes.
Federal Law The Fair Labor Standards Act (FLEA) does not prohibit employers from changing paydays. But the law states that wages must be paid when due, which generally means the next regularly scheduled payday. Beyond this provision, the FLEA does not place requirements on how frequently wages are paid.
If an employer does not pay employees according to the California labor regulations, they may be violating state wage and hour laws. An employer who makes late payments may be liable to the state for statutory fines. However, employees can also sue their employees for wage violation damages.
The employer can deduct your next paycheck to correct the error. However, your employer can make adjustments only if errors are detected within 90 days of the error first occurring. Furthermore, your employer must notify you in writing before correcting the error.
Legal option #1: the company can close the doors and declare bankruptcy. The employees may or not get paid, eventually. If the company doesn't pay the employees, they won't be subject to the taxes on the missed payroll.
Under the Federal Labor Standards Act, an employer must pay an employee at least once a month, sometimes even as frequently as every day, depending on company policy. When an employer doesn't pay an employee on time, it is a violation of the FLEA and the employer could be liable for damages.
At-will employment doesn't just cover firing, however: An employer can also change the status of an at-will employee -- including, for example, the employee's hours, salary, title, job duties, worksite, and so on -- without notice and without cause.
When switching employees from salaried to hourly, you'll need to figure out what to pay them. The employee's hourly pay rate can be lowered to match their old weekly rate as long as they do not drop below the federal and state minimum wage.
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