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Pay reductions to cope with bad economic... Expand / Collapse
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Posted 10/3/2008 4:37:58 PM
 
I am working on a few scenarios but before I get too far, would the company be facing possible discrimination law suits (or any law suits for that matter) if compensation reductions are based on compensation levels. For example, the more you earn the more your reduction may be:
If employee comp is greater than $80k annually, 5% reduction
If employee comp is greater than $100k annually, 6% reduction

We want to avoid lay-offs because we have a great staff.

Thanks.
Post #2023
Posted 1/14/2009 3:03:46 PM
 
I would love to know the answer to this question because we are doing it too.
Post #2106
Posted 1/21/2009 2:00:53 PM
 
We are also considering cutting salaries 10% across the board and I wondered if there are legalities I should be aware of before we go forward.
Any advise would be appreciated.

Thank you.
Post #2110
Posted 1/21/2009 4:16:03 PM
 
Would an organization be eligible for the Work Share program through EDD, if they ONLY cut wages, not both wages & salaries? Thanks.
Post #2111
Posted 1/23/2009 10:15:04 AM
 
We did reductions based on exactly that. It passed through our attorney. I think it also sends a kind message to the lesser paid employees that Exec's are willing to take the bigger hit.
Post #2113
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