reduction in pay to meet OT requirements w/o increasing costs
The employee is non-exempt and works approximately 10 hours per week in OT. This has been occuring regularly for several years. In a sudden effort to reduce costs, the company wants to cut the employee's hourly rate and still require the overtime. The obvious result is that the employee is going to get paid a lot less to do the same work. There are no performance issues for this employee. Can they do that?
1 answer | asked Feb 16, 2004 2:17 PM [EST] | applies to Texas
Answers (1)
overtime
Yes, the employer can reduce the employees hourly rate as long as the employer is paying at least minimum wage and is still properly paying time and a half for overtime. One exception would be if there was a contract which stated the rate could not be reduced.
posted by Trey Henderson | Feb 16, 2004 2:23 PM [EST]
Yes, the employer can reduce the employees hourly rate as long as the employer is paying at least minimum wage and is still properly paying time and a half for overtime. One exception would be if there was a contract which stated the rate could not be reduced.
posted by Trey Henderson | Feb 16, 2004 2:23 PM [EST]
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