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Salary reduction

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sixthring

Junior Member
What is the name of your state (only U.S. law)? Pennsylvania

My company just announce a company wide salary reduction of 5% beginning January 1st 2009. This will lower my salary below my agreed upon hiring salary. Can they do this? What are my recourses? I do not mind a reduction but to go below my agreed hiring salary seems unjust.
 


pattytx

Senior Member
Things are tough all over and 5% isn't very much in the whole scheme of things. Unless you have an enforceable contract that prohibits the employer from ever lowering your salary, you'll have to decide to take it or decide to look for another position.
 

sixthring

Junior Member
I agree

5% is not much the point that rubs me is that this is below my agreed upon hiring salary. Plus this was not discussed with me at any point nor anyone else in the company. They only announced it via a webpage. I would gladly surrender my minor raise i got at the start of the fiscal year, but I have issue with going below my agreed salary.
 

cbg

I'm a Northern Girl
As long as you are making the higher of state or Federal minimum wage (if non-exempt) or $455 weekly (if exempt) and you received prior notice of the reduction, that's all the law cares about.

Unless you have a bona fide, legally enforceable contract (not an offer letter, a CONTRACT) that specifically states that your salary can never go below x, the fact that you initially agreed on a higher salary means zilch legally.
 

crystallayden

Junior Member
Maybe you can ask your company to make a written agreement stating that this reduction is temporary. Also a deadline when you will get your normal salary. And if it is possible, as something to compensate the reduction in the future. If your company can not provide it, you better looking for another job. Good Luck!
 

pattytx

Senior Member
Maybe you can ask your company to make a written agreement stating that this reduction is temporary. Also a deadline when you will get your normal salary. And if it is possible, as something to compensate the reduction in the future. If your company can not provide it, you better looking for another job. Good Luck!

And unless such an "agreement" is very narrowly written, it would not be legally enforceable. In this economy, it would be a stupid employer who would legally committ to such conditions.
 

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