Flat rate pay changed by employer

[cindy612]

What is the name of your state (only U.S. law)? MD

My husband works for a local gas station for the last 8 years. They just informed him that they are cutting the percentage of the flat rate he has been paid since starting. We have never had this happen before and don't know if this is legal in MD.

They claim they are losing money and need to cut back, which I believe based upon the economy and their recent additional expenses, but to cut his pay and increase his hours seems not right. Their agreement, not in writing, was to work M-F for a set % of the labor rate. Now his % has been cut and they are requiring him to work Saturdays as well.

Is this legal or allowable?

 

[pattytx]

I take it he's a mechanic?

 

[cindy612]

Yes he is.

 

[pattytx]

OK.

A verbal agreement does not generally rise to the level of an enforceable contract. Therefore, all the wage and hour law requires is that he be paid an average of at least the state minimum wage (same as federal, $7.25/hr) for all hours worked in the workweek and the overtime premium (half-time portion) for hours worked over 40 in the workweek. I would note that "hours worked" include all time he is "under the control" of the employer; that means being required to be at the job location, even just sitting around waiting for a job to come in.


As long as he received prior notice that this rate was changing, the change is legal; IOW, it cannot be made for hours already worked.

 

[cindy612]

Pattytx, thank you. Now I know how to proceed. We must negotiate with his employer so both sides can benefit.

 

[cbg]

Not "we", cookie; "he". YOU have no legal standing to do anything except research and be supportive. HE is the one who needs to do the negotiation. The employer can quite legally refuse to discuss anything at all regarding hubby's employment with you.

 

[cindy612]

Well, the "we" is what I would call marriage. My husband doesn't know that he can go to his employer and negotiate. He believes he has no control over his situation. You see, he is an extremely talented mechanic and I am very knowledgeable about business and how it works. WE complement each other.

WE discuss his situation, his options, and then create a strategy. Understanding the law is part of understanding what our options are.

I realize you cbg may encounter unscrupulous individuals on this forum, but to treat ALL posters as uneducated "cookie"s is disrespectful. Just because WE do not understand the legality of everything, and look for guidance on a forum, does not allow you to treat posters as morons needing to be told what to do and how to do it.

Many thanks to pattytx for your professionalism and assistance.

 

[pattytx]

HE could "negotiate" himself right out of a job. YOU are not the employee; you can advise, you can suggest, you can support. But inserting yourself into this situation with the employer could end up getting him (legally) fired.

 

[cbg]

None of which changes the fact, that legally, ONLY your husband has legal standing to discuss this with the employer. Discuss "strategy" with him all you like, but when it comes to actually talking to the employer, HE is the one who has to do it, not you. The employer can refuse to talk to you, and in fact can fire your husband for your interference, and it will be a legal firing.

You may not like the way I present the information, but this is information you need to keep you safe legally.

 

[xylene]

It is perfectly fair and legal for the employer to simply fire your husband simply for giving the employer grief.

You may be doing a disservice by overstating / overestimating the strength of your position.

Is husband prepared / willing to find a new place to hang his tool belt?

 

[cindy612]

I used the wrong pronoun. The WE ends when HE goes to work and negotiates with his employer, with whom we have a good, longstanding relationship. I don't conduct my husbands' business for him, only advise him of options.

My husband is a key employee and has brought business to the shop to enrich both himself and his boss. He is the only employee to do this. He is constantly looking for ways to make the shop more profitable, so this pay cut was surprising and out of the blue. We want the shop to continue being busy and profitable, because it means continued employment for my husband and the owner.

As I mentioned in my post, we want what is best for our family AND the employer, who is a small business owner and struggling in this economy. Because I was looking for a specific answer, I did not feel it necessary to expound on additional information in the post.

I assume most people have common sense and for a wife to negotiate with her husband's employer is, well, stupid and makes no sense to me. But I guess you deal with all kinds and have to assume all posters think alike.

Posting on this forum doesn't give the commentators a good understanding of the person at the other end of the computer, and their common sense understanding of how real life works.

Again, thank you for the original answer to my question.

 

[Zigner]

Is this legal or allowable?

Yes.

(specific enough?)

 

[pattytx]

Makes perfect sense. Real world, he could get fired. His "negotiating" could end up with "hey, that means you're resigning?". Businesses are hurting and even going under.
usiusin

 

[cbg]

You would be amazed at the number of husbands, wives, mothers, fathers, and siblings who are prepared to march into their family member's employer's office (or who do not post until they have already done so) and do all the "negotiating", which in many cases - (I do not say in your case) means making demands, outside of the presence of the family member/employee. We have had posters who wanted to know if they could sue their family member's employer. Not, can the family member sue. Can THEY, the husband/wife/other relative file a SEPARATE SUIT from the one the employee can file.

So when, as responders, we see you (generic you) using WE, red flags go up. YOU may be one of the few who understands where the line gets drawn, but we have no way of knowing that.