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Demotion / Pay Cut

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#1 Nanswarly


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Posted 16 February 2010 - 09:30 AM

My employer is in Oregon.  They are considering, as part of a disciplinary action, demoting an exempt level manager for non-performance of his operational division, and placing him into a different position.  There is documentation about the issues at hand.  The demotion would include an incremental pay cut, since the position would have less responsibility over a smaller operational area of the company, but more within his expertise.  I've read an exempt level person's pay cannot be reduced as part of a disciplinary action, however, since the scope of responsibility would be changing, and the company still feels the employee can make a valuable contribution to the organization, the pay cut would be due to the position change, not the discipline. 

Any recommendations?

Thank you.

#2 Fallen


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Posted 16 February 2010 - 09:38 AM

"I've read an exempt level person's pay cannot be reduced as part of a disciplinary action...."

I don't know what you've read where, of course, but that's not true.  Doesn't matter whether someone's being demoted or promoted or nothing is changing; an employer's free to change someone's pay to min. wage for no reason at all (or, in the case of exempt, $455/week, unless state law has a higher min.).  If the person has a contract guaranteeing them X for Y period of time, they're free to sue the employer for the difference.


I'll echo PG's advisory "warning" with a twist: (Many) legal issues are complicated. Explanations and comments here might not fully identify or explain the ramifications of your particular problem. I do not give legal advice as such (and such is impermissible here at any rate). Comments are based on personal knowledge and experience and legal info gleaned over a quarter century, and every state has differing laws on and avenues to address most topics.  If you need legal advice, you need to consult (and pay) a professional so that you may have someone to hold accountable.  Acting on personal and informational advice from a stranger on the internet is a bad idea -- at least not without your own thorough due dilience/research and confirmation as it applies to your situation.  :)

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