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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111654
Experience:  20+ Years of Employment Law Experience
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Can a employer reduce my salary and benefits if they made a

Customer Question

Can a employer reduce my salary and benefits if they made a error in payment to me? I reduced my hours from 80 to 64 in a salaried position about two years ago. My hourly reduction was still full time with full time insurance, salary, and PTO benefits. When I cut back my hours the amount they paid me for those hours increase. It appears what they did was pay me more hourly since I reduced my hours so my salary was not reduced. Now I'm getting ready to retire May 31st. They want to reduce my salary and take away some of my PTO earned hours to augment what they claim to have paid me over these 2 years?
Part of it is that the employer wants each department to reduce their individual budget. Feels like since I'm soon to be retired, doing this with me is a way to accomplish that department of facility budget reduction. Can they just do this or do I have to agree toit
Submitted: 9 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
A "Salary" employee is one whose salary remains the same regardless of how many hours they work in a week. Unless the employer actually gave you written notice BEFORE you worked those hours of a reduced rate of pay, them trying to retroactively reduce pay 2 years later is going to be illegal according to the US Department of Labor. In fact, now you are ready to retire, this timing actually would be circumstantial evidence of retaliation based on age or based on you deciding to retire and that is a complaint to the EEOC you could file for violation of both the Age Discrimination in Employment Act and also the Older Workers Benefit Protection Act.
I would suggest that when you meet with them you show up with a local attorney or if you cannot do so you inform them that they never gave you any notice of a reduction in salary, especially when your hours were still more than 40 hours a week, PRIOR to you working at that rate. Also, inform them that it based on them doing this upon you retiring you believe this is being done based on your age and you do not want to go to the EEOC in addition to the US Department of Labor, but you will if they force this issue.