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NJ State mandate regarding salaried employees


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#1 jodigirl500

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Posted 13 February 2013 - 05:14 AM

I'm a bit confused. My husband took a pay cut to move up in his company which is a large retail auto repair/ supply store in NJ. He was transferred to a brand new store to work as an assistant manager, where both he and the manager are paid salary, not hourly.

After a few weeks, the regional manager informs him there is a NJ State mandate that a company cannot have 2 salaried employees when that location is doing less than 80 billable hours worth of work and subsequently demotes him to a salaried employee, drastically reducing his pay again.

Does such a mandate exist? I have searched high and low for documentation supporting or disproving this and have come up with nothing!

Does he have any course of action?

I'd appreciate any feedback!
Thanks!

#2 adjusterjack

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Posted 13 February 2013 - 07:07 AM

After a few weeks, the regional manager informs him there is a NJ State mandate that a company cannot have 2 salaried employees when that location is doing less than 80 billable hours worth of work and subsequently demotes him to a salaried employee, drastically reducing his pay again.

Does such a mandate exist? I have searched high and low for documentation supporting or disproving this and have come up with nothing!


I'd call BS on that "mandate."

But it doesn't really matter. In the absence of a real employment contract or collective bargaining agreement, the employer can pay the employee whatever it wants as long as it's not below minimum wage and can use any excuse it wants to justify it regardless of whether the excuse is true or made up.

That's how work works.

Does he have any course of action?


Sure.

He can seek employment elsewhere.

But that's it.

Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk.


#3 NewYorkEmploymentAttorney

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Posted 13 February 2013 - 08:39 AM

The manager may be referring to a company mandate within the New Jersey district of the company. Sadly, if this matter was in New York, it is largely irrelevant if the law is valid or not as the employer can set the conditions of employment barring some agreement to the contrary.
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#4 FindLaw_Amir

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Posted 13 February 2013 - 09:15 AM

You may want to contact the State of New Jersey Department of Labor and Workforce Development: Division of Wage and Hour for further clarification on your husband's specific situation. You may also want to visit the Employment Law Center as a good resource to learn more about employee rights.
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#5 Tax_Counsel

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Posted 14 February 2013 - 12:45 AM

After a few weeks, the regional manager informs him there is a NJ State mandate that a company cannot have 2 salaried employees when that location is doing less than 80 billable hours worth of work and subsequently demotes him to a salaried employee, drastically reducing his pay again.

Does such a mandate exist? I have searched high and low for documentation supporting or disproving this and have come up with nothing!


No, no such state law or regulation exists. State and federal laws set the minimum that employees must be paid. They don’t set maximums and don’t interfere with business decisions to the extent the manager implied here. What likely happened is the manager told the employee that knowing that if the employee believes it was required by law the employee would give less push back on it.


Does he have any course of action?

I'd appreciate any feedback!
Thanks!


Sure, he can challenge the manager on this, tell the manager no state law requires what the manager claimed, and tell the manager he won’t work for the lower amount. But if the company really doesn't want to pay more for the work he does, the manager will say no and your husband will have to follow through and quit unless he wants to cave and basically show the manager that the company can walk all over him. Or the manager may simply fire him. Either way, if he wants to challenge the pay cut, it'd be a good idea to have another job lined up as a fall back.




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