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Wage Agreement Questions

Being employed alone is not enough for a person to be happy and work well. If an employee is not given a good and satisfying pay, he/she will not be motivated to work well. How does one know if what they are being paid is right or not? How should one go about understanding the wage agreement that is there between the employer and employee?

People have many questions about wage agreements. Some of the popular questions about wage agreements that have been answered by the Experts below.

Can an employer reduce wages with only a verbal agreement?

Laws regarding wage reduction through verbal agreements differ from state to state in the US. In some states like Michigan, an at-will employer can reduce the employee’s wages with just a verbal agreement. He/she just needs to give the employee a notice before reducing the wages. This notice need not be in writing and can be verbal.

What can be done if after a verbal agreement, an employer does not pay the employee his/her salary and expenses?

The employer has to pay the employee wages irrespective of whether there is a contract or not. If the employer fails to do so, the employee may first ask them to send a paycheck. If in spite of telling, they do not pay, then the employee can file a complaint with the Wages and Hour Division of the US Department of Labor.

Should a company pay its employees for any work related travel time? Is this travel time included in overtime calculation?

According to the Fair Labor Standards Act (FLSA), the time that is used to travel to worksites during a workday should be compensated. Whatever time the worker takes to travel between jobsites should be taken into consideration but the time used by the employee to travel home from the jobsite is not considered for wage calculation. The travel time should be paid at the employee’s regular pay rate. However, if this rate of pay is different, it should be mentioned in a written agreement that should be signed by the employee.

If there is overtime work, it must be calculated according to the weighted average method of computing overtime pay.

Does a union laborer working on a prevailing wage job get fringes paid into the union?

The Prevailing Wage Laws under the Davis – Bacon Act state that the fringe benefits paid to an employee are between the employer and the employee. The union only plays the role of negotiating the wages, etc. It is not legally entitled to any fringe benefits.

What can be done if an employer withholds commission?

Commissions should be paid to employees if there is a mention of it in the wage agreement. However, if an employer withholds commissions, the employee can send a letter to the employer demanding him/her to pay the commissions. If the employer further fails to pay, he/she can be sued in a court by the employee for the balance pay and court fees.

Knowing how to understand your wage agreement can help you work better and deal with issues regarding wage payment better. Ask Experts to know more about wages, your employment rights, overtime pay and other employment law related issues at an affordable cost.
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