Q. We conduct yearly
A. Yes, you can decrease the employee's salary prospectively, provided that the employee does not have an employment contract and is not subject to a collective-bargaining agreement that says otherwise.
Of course, reducing salary poses a significant employee-relations issue. Think carefully before taking that step. You may want to consider not giving the employee a raise or bonus instead of cutting his or her salary.
Also, you should make sure you make these decisions consistently and take the same action for all employees with comparable performance.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- 10 Secrets to an Effective Performance Review
- Poor economy, new legal peril: Refusing to hire the unemployed
- In Chino, having too few time clocks costs $1 million
- Tyrone man collects $200,000 in ADA lawsuit settlement
- How familiar are Americans with the ACA?