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Business Law/Ethics: Retroactive Pay Reduction (solved)
jotate
Registered User regular
Registered User regular
So having a friend in the HR department, I've gotten wind of some policy changes at my company which to the ears of everyone that's heard it sends up a shit ton of "damn, that's gotta be illegal" flags. Doing my best Googling, I haven't been able to come up with anything.
Basically, the plan is that if someone (non-contracted, exempt and non-exempt) quits without giving two weeks notice, they're going to retroactively decrease their salary to minimum wage for that pay period. We're on two week pay periods. So if I decided on the Friday ending a pay period that I wasn't coming back, they're going to reduce my salary for the two weeks that I already worked to minimum wage ($7.00/hr in Ohio) and pay it out the following Friday when I was scheduled to receive that paycheck.
I'm not personally worried about the situation, but it's definitely a big middle finger to every person working here and a piss in the ethical cereal bowl. My question is whether or not it's legal. Googling has led me to an unreferenced "definitely illegal" from a Texas specific site and a whole lot of "it's probably illegal" from user-based Q&A sites.
Anyone out there have some legal insight?
Basically, the plan is that if someone (non-contracted, exempt and non-exempt) quits without giving two weeks notice, they're going to retroactively decrease their salary to minimum wage for that pay period. We're on two week pay periods. So if I decided on the Friday ending a pay period that I wasn't coming back, they're going to reduce my salary for the two weeks that I already worked to minimum wage ($7.00/hr in Ohio) and pay it out the following Friday when I was scheduled to receive that paycheck.
I'm not personally worried about the situation, but it's definitely a big middle finger to every person working here and a piss in the ethical cereal bowl. My question is whether or not it's legal. Googling has led me to an unreferenced "definitely illegal" from a Texas specific site and a whole lot of "it's probably illegal" from user-based Q&A sites.
Anyone out there have some legal insight?
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I'd still think there'd be some sort of implied agreement regarding pay, and changing that rate for hours already worked just seems like it should be illegal.
But yeah, I know you're looking for more than that.
If nobody else comes up with anything, maybe I'll look around when I have time.
EDIT: At-will employement seems like it would imply no guarantees about the length of their employment, or about future pay, but I just can't see how it can cover a retroactive pay cut.
Man, what? That doesn't seem right, because minimum wage is protected at the federal level, and last I checked all employees have to be compensated at a rate of at least the federal minimum based on pay period. You worked, you get paid minimum wage.
True. It doesn't even need to be in a contract, it can just be the the employee handbook that this will happen. Those are, IIRC, generally somewhat binding.
EDIT: Shit, and if they change the policy now and publish it there, I guess they could probably get away with this.
I was under the assumption that this was "oh hey I'm not coming to work again ever." I guess I miss-read that.
But yeah, if you're making $X/hr you keep making $X/hr until you're laid off or change positions, not because you put in two weeks notice. I'll try to find the particular law for your state but I'm sure any DoE worker will tell you the same.
No that's illegal. They can make you sign an agreement and then kick you out the door if you refuse though.
That makes a bit more sense. That last bit is a little crazy though, a little wild West really
Well, not literally kick, but they can get security to escort you out.
But no, this is not legal in any way and I'd just as well work through my two weeks without giving them notice and then going:
"Today is my final day here, I've done this to protect my position and wage as dictated by our agreement on date of employment. Because I don't really owe you any fucking notice and a company that tries to pull this kind of shit on it's own employees deserves every inconvenience it gets."
But I'm an asshole like that. I burn bridges when the owner of the bridge turns out to be a german invasion team.
You were right, it is "I'm never coming to work again ever." For most jobs there is a one or two week delay between when you work and when you get paid for that work. So the worker worked for the pay period Nov. 3-Nov 14, and on the 14th he decided to quit and never come back. On his paycheck for that period (due to arrive on the 28th) he gets paid minimum wage for that pay period instead of his actual wage.
This sounds illegal to me.
Edit:
Covered under FLSA of 1938 if I'm not mistaken.
Also, you should really rub it in their face when you print it out and hand it to them.
That's the thing I remember it too and am having a really hard fucking time isolating it.
I know it has something to do with you having already worked those hours so they can't dock your pay from that time you did work.
I think it's illegal even if you sign. Just like you can't sign a contract that says "Yeah that number up there is totally bogus and if he were reading this he'd notice he's actually only getting $1/hr but he doesn't so hahah" is just as illegal as "We can garnish your wages for time you've already put in if you don't show up anymore because, well, uh, we need to train people, yeah!"
And, there is still a chance this is illegal, I just don't know. And, until they start trying to get you to sign something, I am just saying that it doesn't matter.
But then again, I'm having a difficult time focusing on the line between ethically logical and currently legislated.
Then the next question is "how authoritative is an employee handbook term in relation to a core contractual term like pay or notice". If this was the UK the answer would be "fuck all".
Same. In the UK it is pretty dammed procedural as well. For example - dismissals - even if an employer or manager has a bloody good reason (say proven theft), if they do not dismiss as per the statutory process then that will automatically make the dismissal unfair. Assuming one has a year's service.
call, find out.
Fucked up.
Regardless, thanks for the discussion and affirmation that I should totally move to NZ, PA.
Do not believe for a minute that you have to accept this, though. Do you have any vacation time saved up? If so, I really would quick, take the vacation pay at your current rate. Ride out unemployment for a short time to possibly raise up their rates, and then consider working for them again.
And then get the maximum amount of unemployment I could.