You can cut wages for ‘Maxed Out’ employees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

You can cut wages for ‘Maxed Out’ employees

by on
in Human Resources

Q. We have some employees who are earning the maximum salary for their job classifications. Can we cut their pay if we feel they’re overpaid? —D.N., Colorado

A. If you’ve determined that employees have “maxed out” or are overpaid for their work, no law technically prevents you from freezing or cutting their wages. But, as with any wage adjustments, you’ll need to make sure you’re not exposing your company to a potential wage-based discrimination claim. At a minimum, compare the wages paid to all other similarly situated employees to help identify any unfair treatment.

Related Articles...

    No matches

Leave a Comment