Friday, January 23, 2009

Sadly, Not Much To Contest About an Across-The-Board Pay Cut.

A reader recently asked:

I've read over your blog and must thank you for posting all of the information. Your blog is very helpful. I have a question that I would like to ask you that I am having trouble finding an answer to. All salary and hourly employees at the company I work for have been told that a mandatory pay cut would be put into effect on our next pay cycle. What laws exist in the state of Maryland in regards to this?

I wrote back:

Not much. Employers cannot take back money that already been earned (i.e., commissions and bonuses), and must give one paycheck notice of a pay cut.

I add: of course the decision to make the cut must be non-discriminatory and cannot reduce an employee's wages below the minimum wage.

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