Q. Legally, is there a difference between
A. Many employers are searching for ways to cut labor costs to avoid layoffs. But cutting expenses with exempt employees is tricky because, under the Fair Labor Standards Act, those employees must be paid a set salary in any week they perform work, regardless of the number of hours worked.
Whether the employee volunteers to take a cut in pay or the cut is imposed by the company doesn’t make a difference. While it’s fine in response to a salary reduction to relax your expectations regarding the employees’ work schedule, keep in mind that exempt employees are not paid based upon their hours worked.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/10069/reducing-salaries-the-impact-on-exempt-status "