• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Take a pay cut or leave: Is such a demand legal?

by on
in Compensation and Benefits,Hiring,Human Resources

Q. We’ve concluded that a small group of our employees don’t appreciate their jobs. We’d like to post their jobs and replace employees who won’t take a pay cut with unemployed people who will work for a lower wage. Is this a problem? — A.D., New Jersey

A. Assuming that your workers are employed on an at-will basis, you are at liberty to change the terms of their employment prospectively, as long as it’s not for an unlawful reason (e.g., because of these employees’ gender, race, age, etc.).

But be aware: Depending on the amount of a pay reduction you are contemplating, it’s possible this action could qualify the affected employees for unemployment compensation. Also, realize that labor unions have increased their presence and these are the types of actions that could spawn organizing activities.

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/30190/take-a-pay-cut-or-leave-is-such-a-demand-legal "

Leave a Comment