pay cut without notice

I have been employed by a company for two months. At a staff meeting held on Feb 26th, it was announced everyone would be taking a 5% pay cut effective retroactive to Feb 16th. The company employs approxiamtely 25 people. Isn't it required to notify employees beforehand? Also, is it an employer's responsibility to give the employee the option for a pay cut or a lay-off?

Thanks.

1 answer  |  asked Feb 28, 2009 10:29 AM [EST]  |  applies to Nevada

Answers (1)

Malik AHMAD
Pay Cut

I am posting the Nevada law which deals in situation like that. You can interpret in any way you want. Because of no attorney client relationship, and my own insurance issues, I cannot interpret it for you. Here, you go.

NRS 608.100 Unlawful decrease in compensation by employer; unlawful requirement to rebate compensation; prerequisites to lawfully decreasing compensation.

1. It is unlawful for any employer to:

(a) Pay a lower wage, salary or compensation to an employee than the amount agreed upon through a collective bargaining agreement, if any;

(b) Pay a lower wage, salary or compensation to an employee than the amount that the employer is required to pay to the employee by virtue of any statute or regulation or by contract between the employer and the employee; or

(c) Pay a lower wage, salary or compensation to an employee than the amount earned by the employee when the work was performed.

2. It is unlawful for any employer to require an employee to rebate, refund or return any part of the wage, salary or compensation earned by and paid to the employee.

3. It is unlawful for any employer who has the legal authority to decrease the wage, salary or compensation of an employee to implement such a decrease unless:

(a) Not less than 7 days before the employee performs any work at the decreased wage, salary or compensation, the employer provides the employee with written notice of the decrease; or

(b) The employer complies with the requirements relating to the decrease that are imposed on the employer pursuant to the provisions of any collective bargaining agreement or any contract between the employer and the employee.

posted by Malik AHMAD  |  Feb 28, 2009 12:09 PM [EST]

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