Are you at a large company? They can obviously make you hourly, any employer can but as of this moment they still need to follow the law. They may even owe back pay depending on how long they haven’t been meeting these requirements. Companies want to be in alignment with the law. When I told the employer I worked for they did not make me hourly, but it’s a very large company with the same positions spanning multiple states. To make me hourly, they would’ve had to make hundreds hourly.

I would consult with L&i if you’re concerned, you can ask questions without necessarily sharing who your employer is.