Comments on: Is tough economy a signal to increase compensation?

By: C.S

C.S — Wed, 11 Feb 2009 16:47:15 +0000

As we all know the economy is having a devasting effect on a lot of businesses and thousands are loosing their jobs. Here is my question the owner of the company I work for is requesting that all salaried personnel take a 10% cut in pay. Are we required to accept this and what sort of rights do we have to protect our jobs in the event that we do not wish to accept this salaray reduction? He is not putting anything in writing with regards to re-instatement or original wage base. Some are saying if this is needed than instead of reducing my salary I will offer to take a day off a week without pay but once again how does that play into the laws and rights of the employees.
Any help would be greatly appreciated.

By: Kathy

Kathy — Fri, 22 Aug 2008 14:44:45 +0000

Hi IM Wagner;

We have had situations in our organization where employees have moved from a more demanding position to a less demanding position without a change in salary and we have frozen their salaries. Without knowing the difference between what you’re earning and what others in your current position are earning I don’t know whether a 5 year freeze would be considered reasonable.

As far as legal, at least in the state of NJ, there is not a requirement to provide wage increases to employees each year. It is a good practice, otherwise you stand to lose people to other employers, but not required by law.

I hope this helps,
Kathy

By: Laura K

Laura K — Fri, 22 Aug 2008 14:39:56 +0000

We are currently using an optional 4 day/1o hour workweek. We continue to pay all paid holidays to all full time employees regardless of their schedule. We only approve schedule changes that are made two weeks in advance provided that coverage can be found in the department.

By: Phyllis C-Memphis

Phyllis C-Memphis — Fri, 22 Aug 2008 12:57:39 +0000

Barbara-We handle the Monday holiday like this. If the employee is normally scheduled off on the day a company holiday falls on then they get a floating holiday to schedule like vacation or they can change their schedule for that week back to a 5 day/8 hour work week. Only about half of our department participates in a 4 day work week so someone changing their schedule doesn’t really affect anything (20 person department). Also, if the employee works 10 hour days, they still only get 8 hours of holiday pay. They get the same number of paid hours/days as the employee that works a traditional 5 day/40 hour schedule. Just fyi…my employees approached me about a 4 day/10 hour work week and I said “Give me a proposal”. They had to stay within preset parameters such as telephone coverage time, current service level agreements and defined critical processes, etc. but they did a great job (better than I could have done it, stricter too).

By: Barbara R, Memphis

Barbara R, Memphis — Thu, 21 Aug 2008 20:19:08 +0000

Regarding flextime scheduling, anyone have any suggestions as to how to handle vacation days, etc. when an employee who normally works Monday – Thursday wants to change one week and come in Tuesday – Friday. What about holidays that fall on a Monday? Do the Tues – Friday employees get ane xtra day to make up for the Monday “holiday”? I would love to hear from other companies who have put flex-time into place.
Thanks.

By: IM Wagner

IM Wagner — Thu, 21 Aug 2008 18:39:39 +0000

Previously, until one year ago, I was in an Administrative position. Now I have been moved down to a less demanding position. My salary was not reduced because of my experience and job responsiblitiies, but it has been frozen for over five years. Is this normal and is legal ?

Thank you,
IM Wagner