Sign in to follow this  
Followers 0
Nanswarly

Demotion / Pay Cut

2 posts in this topic

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.

Share this post


Link to post
Share on other sites

"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.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0