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Can a small corporation reduce a bookkeeper's salary if hours are cut?

Can a small corporation reduce a bookkeeper's salary if hours are cut?

Q: What are the legal requirements for reducing employee hours?

Employers can reduce employee hours as long as they comply with minimum wage laws and any existing employment contracts. It's essential to communicate the changes clearly and ensure they are not discriminatory. Employees should be aware of their rights regarding pay and hours under any applicable agreements.

Q: Are there laws protecting employees from salary reductions?

Yes, employees may be protected from salary reductions if they have a contract or if the changes violate wage laws. Employers must ensure that any salary adjustments comply with minimum wage requirements and do not discriminate against any employee based on protected characteristics.

Q: What should I do if my salary is reduced?

If your salary is reduced and you believe it is unjust, review your employment contract and any relevant company policies. You may want to discuss the situation with your employer or seek legal advice to understand your rights and options.

Q: Can a company lay off employees instead of reducing salaries?

Yes, a company can choose to lay off employees instead of reducing salaries. This decision often depends on the company's financial situation and operational needs. Employers should follow any legal requirements regarding layoffs, including notice periods and severance pay, if applicable.

Full question:

Is it legal to reduce the salary of a bookkeeper of a small corporation by 10% or 20% if the hours per week is reduced by the same percentage. Gross receipts are down by about 50% and the President and Vice-President have been unable to take any pay for the last year. The company has been losing money for more than a year.

Category: Employment
Subcategory: Hours
Date: 04/07/2025
State: California

Answer:

The legality of reducing a bookkeeper's salary depends on whether there is an employment or union contract in place. If no such contract exists, employers can generally change employment terms at will, provided the changes are for legitimate business reasons and not discriminatory. Additionally, any changes must comply with minimum wage laws. It's important to review any relevant employment contracts, collective bargaining agreements, or employee handbooks to understand the employee's rights regarding pay and hours, as well as the employer's obligations. In some cases, employee handbooks may be considered contracts.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can an employer reduce an employee's salary without consent?

Generally, an employer can reduce an employee's salary if there is no contract preventing it. However, the employee should be informed, and the changes should be for legitimate business reasons. If the employee is under a contract, the employer must comply with its terms. Always check local laws and any applicable agreements for specific requirements.