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Article: Slimming salaries: putting salaries on a diet without adequate notice bloats legal exposure.(Legal Trends)
- Article from:
- HRMagazine
- Article date:
- October 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 Society for Human Resource Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Employers sometimes cannot afford to cut any more jobs but still need to cut more costs--and fast. Looking for savings, they consider not just freezing salaries but slashing them.
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This strategy isn't for the faint of heart. Without considering the legal minefields, cutting salaries may increase legal costs and jeopardize more jobs. This risk can be exacerbated by the urgency of reducing costs; in the rush, employers may overlook obligations to provide employees with advance notice of reduced salaries.
Time is precisely what is needed to thoroughly review individual and collective bargaining agreements (CBAs) and carefully ...