Can a salaried worker receive a pay cut?

michr

if they are claiming he is salary "exempt" which means he does not get paid any overtime then they can not retroactively adjust his salary for the 2.5 hours he missed. if he missed a whole day then they could deduct the whole day for a personal absence even if he is exempt.
they can change his pay rate as long as they notify him prior to working any hours under the new wage. if they are claiming he is "exempt" then they must pay him at least $455.00 per week for him to qualify (there are numerous other criteria that must be met).

if they are not claiming he is exempt then they can deduct those hours but must do so each week as they happen and if he is not exempt he should be paid overtime for any hours in excess of 40 per week. since this is a family business it seems they may not be real clear on the law. many people do not understand what it means to be paid salary or hourly and who qualifies for exempt status.

these topical fact sheets from the department of labor will help you to understand the differences between salary, hourly, salary exempt, exempt etcetera.............. and when salary employees wages may be reduced for an absence.
http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17a_overview.pdf
http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17g_salary.pdf

after reading these and you determine what the employer is doing and if they are claiming he is exempt you can e-mail me and i will be glad to answer your questions.

KP7689

Yes, as his employer they are entitled to cut his pay moving forward. However, I am not sure that is what they are proposing.

Do you mean they are not going to pay him at all for a given period where he has actually worked? That would, in fact, be illegal. Is this paycut retroactive? Have they giving him a new salary moving forward?

While they can cut his salary, they cannot simply remove a paycheck when he has worked. I would need more specifics to tell you a more definite answer. However, it does sound like this may be worth a call. The Dept. of Labor (DOL) would handle the complaint.

Good luck.

Response to updates: Now I understand more clearly. Michr is correct about the argument regarding being salary - your husband does not get paid overtime and in turn, his emloyer cannot dock pay for not working overtime in the past. They can reduce his salary in the future - but not retroactively.

I'd go with Michrs' links first and try to explain this to his family before filing a DOL complaint. Any time you are dealing with family, it makes those conversations much more difficult. I would caution him not to bring up their personal purchases - keep to the professional and legal facts.

I hate that you are going through this right at the holidays. I wish you the best. Try to keep your chin up!

Stephanie73

Unless he has a contract stating that he must work a minimum number of hours per week, his salary should be the same no matter how many hours he works. Your husband should tell his parents that he expects a paycheck for that week. If they still insist that he not be paid, he should then demand overtime for any hours he worked over 45 hours per week.

KUGAL

Generally, they can cut pay at any time and change hours required so long as they don't do it retroactively. I am a little confused at "how" they are getting there. If there was an agreement, written or otherwise, that he works 45 hours, then they probably can dock him his hourly for the weeks below, although I would think they would do that at the time. It doesn't really sound like they are reducing his pay as much as enforcing an hourly amount.

Considering it to be a family, I find this quite odd. Usually family is a little more lenient on things like this. Has there been a tiff? If there is a disagreement, perhaps a resolution of the disagreement will bring back the status quo?

Harry

In general, yes, but a whole week for 4 hours is excessive. The bad thing is that it could affect his relationship with his family if he tries to take any action.

***Z***

Yes

bob

That does not sound fair. You could call the EEOC and press charges, but you will probably not be invited for Christmas.

It sounds like their business is in bad shape. I would politely ask for the paycheck. I would also start to look for work elsewhere. Sometimes working for family does not work out, It may be time to cut the umbilical cord.

Cubs Girl

Its is perfectly legal to reduce pay to salary employees. No where in the DOL does it state otherwise. There is no wrong doing by the company at all. Look for another job if you cannot take a paycut.

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