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Questions Regarding Pay Cut

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GreyOoze

Guest
I live in New Hampshire and also work in that state as a security guard. About a month ago, the pay of every employee within my company was cut by 10%, which is supposedly the most an employer can cut your pay by law. Myself and most of my coworkers learned of this pay cut through a form letter the company sent us through the mail. Most of us received the letter one day before receiving our first pay check with the adjusted amount. According to the letter we received, this pay cut is due to one of the clients switching from a 60 day billing cycle to a 90 day billing cycle. The letter we all received states that the company I work for is not in a position where they can front this extra thirty days. Since this occured I have developed some concerns:

1. I happen to know as a matter of fact that the client in question went to a 90 day billing cycle almost two years ago, and also that when they did that, they did it in such a way so as not to put their contractors in a bad position financially.
2. The security company I work for was recently sold to an outsider about eight months ago. Since the new owner has taken over, he has spent a considerable amount of money on issues that are not directly associated with the company, at least not from any personnel standpoint. This new owner also has some rather expensive external interests that I fear he may have invested company funds in.
3. Although the letter states that this pay cut involves everyone, I have some serious doubts. My question is, can an employer cut your pay, and inform you verbally and in writing that everyone elses pay was cut as well, even though that is not true? Is it legal for him to lie to you under these circumstances? Can he or she cut the pay of any employees they choose, without specific reason? Is it legal for the employer to tell you your pay was cut for one reason, when in fact it was cut for another reason entirely? It seems to me the law would require the employer to tell us the truth under these circumstances, so that we have an opportunity to recourse if we so choose.
4. Since this new owner took over, he has hired on alot of his 'friends', though they all do the same thing as the rest of us. I have developed some concerns however that the owner essentially cut the pay of x number of employees simply so that he could pay his hippy friends more money, or afford to keep them at all.
5. If I was to learn that anything more I was told regarding this pay cut is not true, do I have any legal recourse? If I was to learn that only a select few of us received pay cuts after being told everyone did, is there anything I can do about that? As I stated, I already know that the excuse regarding the clients 90 day billing switch is not true, or at least seriously questionable. But there is no direct way I can prove that. The client is simply not going to get involved on the level necessary to back me up.

I would like to quickly add here that both the security company I work for and even the client I am assigned to receive federal money for security related issues and concerns, so the point is my company is receiving additional funds on top of the standard client fees. The security comapny I work for has very little personnel overhead. When I first started I received 1 pair of trousers and 2 shirts that both looked over 20 years old, and that is it. There is no training or schools of any kind, nor any special equipment or operating costs aside from the standard insurance and office rent. We dont even have any company vehicles.

The more I consider this issue, the more I think I am being played big time. I apologize for this being so long, and also if something similar has already been posted. I really needed to vent this out.

Thank You,

Ooze
 


Beth3

Senior Member
All the issues you list in your points 1 through five are completely irrelevant. They may constitute poor mangement but they are not illegal.

"About a month ago, the pay of every employee within my company was cut by 10%, which is supposedly the most an employer can cut your pay by law." Whoever told you that is incorrect. Your employer can cut your pay all the way to minimum wage if they wish to.

The ONLY requirement is that your employer notify you of the wage cut before you begin working any hours at the reduced rate of pay. Notifying you the day before your paycheck arrived is not sufficient, however you now have been put on notice going forward. Your employer does owe you back pay for the one pay period.
 
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GreyOoze

Guest
This is kind of strange. The guy at the labor board told me they can only cut your pay up to 10%. It doesn't surprise me though. He didn't seem to bright anyway.

Based on your reply here, it seems to me that I have no recourse with this issue. If they can cut your pay, and lie to you about it, then as far as I'm concerned there is no law. That pretty much gives them the green light to do whatever they want.

Ooze
 

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