Can employer reduce employees hours?
So, can you legally reduce employee hours? Yes, it’s legal—so long as you can justify your need to do so. For the reduction in working hours, employment law does require you to provide a legitimate reason. And it’s important to remember you keep your employees well informed during the process.
When is a pay cut acceptable for employees?
When a Pay Cut Is Acceptable. In some situations, employees accept the change, like when everyone in the company or department is getting a pay cut for the benefit of the business. In other case, employees welcome it, like when they want less responsibility. And sometimes, a pay cut is intended to get employees to quit.
What happens if your employer Cuts Your hours?
Another side effect of a major cut in hours could be loss of benefits. If some employees are cut from full time hours to part time, they may lose benefits such as health insurance. If this does happen, your employer is REQUIRED to give you COBRA though many employees do not even realize their entitled.
Can a union negotiate a pay cut for an employee?
Yes. Reductions in an employee’s compensation or hours generally must be negotiated with the union that represents the employee, unless the collective bargaining agreement gives the employer the right to make such reductions. 5) How should an employer determine which employees will receive a cut in hours or pay? Carefully.
Do you get paid overtime when your hours are cut?
When your employer cuts your hours and/or pay, the legal rules depend on whether you are: an hourly (nonexempt) employee who is legally entitled to be paid overtime if you work extra hours, or a salaried (exempt) employee who is paid the same amount each week regardless of how many hours you work.
Another side effect of a major cut in hours could be loss of benefits. If some employees are cut from full time hours to part time, they may lose benefits such as health insurance. If this does happen, your employer is REQUIRED to give you COBRA though many employees do not even realize their entitled.
When a Pay Cut Is Acceptable. In some situations, employees accept the change, like when everyone in the company or department is getting a pay cut for the benefit of the business. In other case, employees welcome it, like when they want less responsibility. And sometimes, a pay cut is intended to get employees to quit.
When your employer cuts your hours and/or pay, the legal rules depend on whether you are: an hourly (nonexempt) employee who is legally entitled to be paid overtime if you work extra hours, or a salaried (exempt) employee who is paid the same amount each week regardless of how many hours you work.
Yes. Reductions in an employee’s compensation or hours generally must be negotiated with the union that represents the employee, unless the collective bargaining agreement gives the employer the right to make such reductions. 5) How should an employer determine which employees will receive a cut in hours or pay? Carefully.