We are a small business that offers our 2 full time employees 10 vacation and 5 sick days each year. Because of the economy we are having to scale back what we offer. Is it legal to rework or take back the paid time off that we currently offer to our employees? Also, is it legal to reduce pay of these employees because of economic issues?
Hello, Absent a specific contractual agreement for a specific length of time (which is very unusual) terms of employment can be altered going forward. This means you can reduce pay or take away vacation or sick days. The employee can either accept the terms, quit, or try to negotiate other terms. But it is legal to do this. You cannot, of course, take away days that have already vested or reduce pay for time already worked. I hope this helps! __________________ Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
Experience: Experienced attorney in discrimination, pay, hiring, termination and other employment matters.