Can we cut the pay of 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

Can we cut the pay of maxed-out employees?

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in Compensation and Benefits,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?

A.
You can cut their pay prospectively, provided that they will still earn the minimum wage. However, watch out for morale problems if you do this.

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