Collecting SS Benefits - Can Employer Cut My Pay?

[OnwardUpward]

I'm in NJ and collecting SS benefits (full retirement age) while still continuing to work full time. Somehow my employer found out and now wants to cut my pay. When I applied for benefits, SS said my employer would not be informed, so I don't know what happened. Can they actually do this?

Any advice would be appreciated. TIA.

 

[adjusterjack]

Yes. As long as he pays you at least minimum wage he can pay you anything he wants.

Though you might want to talk to an attorney about an age discrimination claim if he actually does reduce your pay.

 

[xylene]

Your employer may not cut your pay for any hours already worked.

Is this a private employer or a public sector one?

Do you have a union?

Unless you have an employment contract or collective bargaining agreement, an employer can cut pay, but this is suspecious and you'll want to talk about the ageism implications with a lawyer.

I'm kind of curious about this turn of phrase "wants to cut my pay"

Has your pay been cut? How did you find out about your employers desire to cut your pay?

Because talking about it is not a pay cut. (Although effectively being told you will never get a pay rise and a subject to being cut could be ageist in itself)

 

[OnwardUpward]

Is this a private employer or a public sector one?

Private employer

Do you have a union?

No union

Has your pay been cut? How did you find out about your employers desire to cut your pay?

It's about to be cut next pay period (June 30). I overheard the manager and HR person discussing it. They said they would reduce my pay by the amount of my monthly benefit. How they found out I don't know...SS isn't supposed to inform your employer. I applied for benefits because I haven't seen a pay raise in 3 years,

 

[justalayman]

paying a person less because he has other income is not age discrimination. It’s the act of an immoral boss but it has nothing to do with age. It’s simply coincidental op is over 40, at least unless op can support age discrimination elsewhere in the company.


Given the pay cut was discussed after it was known op had other income and no hint suggesting it was considered before supports the argument it isn’t about age but simply the boss thinks he can pay the op less because he op isn’t totally dependent on employer for income. It’s not unusual to use such reasoning when deciding who to lay off when cutbacks come around or even when deciding who to give a raise or promotion to.

 

[xylene]

paying a person less because he has other income is not age discrimination.

If it is Social Security retirment income than that is baloney.

Disparate impact is age discrimination.

 

[justalayman]

If it is Social Security retirment income than that is baloney.

Disparate impact is age discrimination.

Disparate impact based on age is illegal discrimination. If the age is coincidental it is not illegal discrimination

Using your argument nobody over 40 could ever be subjected to a demotion or termination simply because they are over 40. You have to show age was the reason, not simply they happen to be over 40. In the situation at hand, the action proposed was not contemplated prior to the learning of receiving social security. That helps remove an age based claim.

The op is unlikely to prevail in an age discrimination claim unless he can show similar treatment of others based on age or others, but under 40, in similar situations that didn’t face a reduction in pay.

 

[PayrollHRGuy]

Assuming the OPs wages were cut only because he had reached the age where he could receive benefits from SSA that is based on his age it really doesn't matter if he is the only employee that it has happened to or not. It is age discrimination and I think he would have a hell of a case.

 

[justalayman]

Assuming the OPs wages were cut only because he had reached the age where he could receive benefits from SSA that is based on his age it really doesn't matter if he is the only employee that it has happened to or not. It is age discrimination and I think he would have a hell of a case.

His pay was cut because he has other income. That was clearly conveyed by the op.


The fact it is income from social security and op is of the age to be eligible for social security is coincidental, at least based on what the op stated. The trigger isn’t the age but the other income. The fact it is social security income is irrelevant. The fact op is old enough to collect social security is irrelevant. Those are merely coincidental facts.


For your assumption to be valid, the op would have had to become eligible for social security very very recently. Otherwise it proves to be what it looks like: the pay cut is because of the other income, not the age. That would lend credence to your claim but not prove it.

 

[PayrollHRGuy]

Reread what the OP wrote.

And it doesn't matter if the discrimination was delayed.

 

[xylene]

Using your argument nobody over 40 could ever be subjected to a demotion or termination simply because they are over 40.

I'm not arguing this hyperbolic position... This situation does not have the level of reductionism you hyberbolically imply. Employers will still be able to fire employees, cut their pay. Don't worrry corporate capitalism isn't ove just because it is age dsicrimianation for cutting someone's wages simply because of their LITERAL old age pension.

I am asserting that a reduction in wages, termination or lack of opportunities (such as training) commensurate to tenure because of collecting social security is age discrimination .

What would happen in other cases or other kinds of pensions is not material to the OP's situation. Nor does he have to prove a pattern or that is is policy. Discrimination does not need to be institutionalized to occur. Nor would a broad policy of cutting wages based on outside income shield the employer for the discriminatory act of cutting wages of those receiving social security.

 

[OnwardUpward]

For your assumption to be valid, the op would have had to become eligible for social security very very recently. Otherwise it proves to be what it looks like: the pay cut is because of the other income, not the age. That would lend credence to your claim but not prove it.

You're correct - I became eligible for Social Security 3 months ago and immediately applied for benefits. My guess is that the SSA contacted my employer despite their assurance that they wouldn't.

 

[xylene]

You're correct - I became eligible for Social Security 3 months ago and immediately applied for benefits. My guess is that the SSA contacted my employer despite their assurance that they wouldn't.

Why you have a cause to reject this discriminatory pay cut does not hang on who told them or them knowing you get social security. You could have had a social security eligibility party. Them cutting your pay because of your age is not legit.

 

[commentator]

Is this a very small business? I cannot imagine any boss who was not talking about his own, very small sort of private business who would be profoundly stupid enough to suggest to the person that they be about to cut their pay because they were now eligible for and drawing Social Security.

I'd be much more likely to suggest to you that another co-worker informed him you were drawing your social security, rather than that the SS administration contacted the employer. Or that he just happened to think of it and ask.

In actuality, as someone has pointed out, in regard to the pay cut, it hasn't happened yet. Your employer may be thinking that your amount of wages you can earn in a year will be restricted by social security, that he's doing you some kind of favor. Or he may be trying to flat out get rid of you, I don't know. If it's NOT age discrimination, yes, an employer can legally cut your pay, in the absence of a contract or union situation, as long as he pays you at least minimum wage for all the hours you actually work. And age discrimination would be interesting to call, is a bit tricky to show even in the most obvious of blatant cases which we don't really know enough about your situation to make any kind of real decision on it.

 

[cbg]

Given that I have in the past had employees who became eligible for SS benefits ASK for a paycut so as to lower any offset and also to reduce their taxable income, I don't think we can conclusively assume that the employer is exercising age discrimination. He may mistakenly believe that he is doing the OP a favor.