No need to give notice of demotion or pay cut — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

No need to give notice of demotion or pay cut

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in Leaders & Managers,Performance Reviews

Q. We're planning to demote an employee for performance reasons. He'd move from a supervisory job (salaried/exempt) to an hourly job, so we'd cut his pay by about $10,000 a year. What kind of notice must we give him regarding the pay cut and exemption status? —L.K., Missouri

A. You don't have to give him any notice. Remember, at-will employees' terms and conditions of employment are subject to change at any time. But you should think twice before demoting underperformers. Why? It's unlikely that a demoted employee will perform at a satisfactory level and project a positive, team-oriented approach. If his performance is that bad, and you've followed progressive discipline, it may be time to think about termination.

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