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Jul28

Cutting hours and pay for salary employees

Compensation
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In our company, all salary employees work 5 days a week. Employees do not get paid OT, etc… they always get the same paycheck. Since business is slow, we are trying to cut thier days to 4 per week and reduce their salary to 4/5 as well. Is this legal in the state of Florida?

Yes, this is legal in almost every state, as long as the employees are informed before the beginning of the payperiod that their wages will be cut. In fact, although it may not seem like it to the employees, the employer is probably being more than fair here. He or she could just fire several employees to save money. Instead, they are trying to keep everyone employed.

The employer could even reduce the workers salary without a corresponding reduction in hours — again, provided the employees are told before the payroll period when the new rate goes into effect. The assumption is that if the employees do not accept or agree to the reduction in wages, they are free to quit.

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This entry was posted on Monday, July 28th, 2008 at 6:49 am and is filed under
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