Q. A salaried supervisor was unable to handle the stress of his job and requested a transfer. Six months ago we moved him to a rank-and-file hourly position, but we left him at the higher salary. I think I'm being unfair to the other co-workers in that position. May I reduce his wages to the hourly rate? —C.T., Iowa
A. “Equal pay for equal work” is not just a matter of fairness. Failing to provide equal pay to employees performing the same job may expose you to potential liability under federal and state anti-discrimination statutes.
A demoted supervisor should receive a corresponding pay cut. Also, if a demoted supervisor no longer performs exempt work under the Fair Labor Standards Act, you should pay him accordingly, including overtime.