reducing employee's pay

plaginess · July 2003

[font size="1" color="#FF0000"]LAST EDITED ON 07-09-03 AT 12:55PM (CST)[/font][p]An employee was brought in several years ago at a certain pay rate. He was doing a great job for a long time until this past year. He has been warned about his poor performance. It has also been documented. Can we legally reduce his pay because we want to keep him?

Hunter1 · July 2003

Generally, yes, but see the posting 10 lines down about a similar subject.

Pixie · July 2003

[font size="1" color="#FF0000"]LAST EDITED ON 07-09-03 AT 01:59PM (CST)[/font][p]
"He was doing a great job for a long time until this past year. He has
been warned about his poor performance. It has also been documented.
Can we legally reduce his pay because we want to keep him?"

Why would you want to keep him? You've documented his poor performance, he's been warned. Terminate him.

sonny · July 2003

Why do you want to keep a poor performer? I can't imagine this will do much for his morale or in any way make him a better employee?

Eliant · July 2003

Poor performer, has been documented.. Does this mean that you placed him on an immediate improvement plan, outlining the areas that he is failing, failure to improve will result in termination. Or does that mean you have written him up with out any guidance/coaching on what, how he can improve?
If you placed him on an immediate improvement plan and the employee has failed to demosnstrate improvement, why would you keep a poor performer?
Sit with the employee and help him choose a new career path, do him and yourself a favor. However, Ask yourself, will he be surprise when he/she is terminated?

Good Luck

Crout · July 2003

>[font size="1" color="#FF0000"]LAST EDITED ON 07-09-03 AT
>12:55 PM (CST)[/font]

>Can we legally reduce his pay because we want to keep him?

Could you please explain that statement? It seems to be contradictory. That aside, reducing someone's pay as a disciplinary measure is always a dicey proposition because of the potential claims of discrimination. As noted above, it is far better to start a more traditional process of discipline and terminate if the performance does not improve, ASSUMING you have appropriate documentation.

plaginess · July 2003

He is a tech that works on trucks and has gotten older - he is not doing the work he used to. We don't want to fire him. We want to keep him. However, we are not sure that we can legally reduce his pay. So we think we have to give him a choice - either take a reduction or resign. What do you think?

Hunter1 · July 2003

Ah, now you ARE asking for trouble. "He's getting older" Better to deal with the performance issue.

lnelson · July 2003

Agree with Hunter. If you state due to his AGE he can longer do the job you are asking for trouble. Do not mention the "A" word, document him on performance only. If he feels you are reducing his pay due to his age rather than performance he would have an age discrimination case. Ask yourself if he were a younger man/woman having the same performance issues what would you do? Then do that as long as if follows your policies.

globex · July 2003

Is the issue quality of work or quantity of work. As everyone has said, AGE is probablly the second most dicey subject. If his quality is there, what is the problem, if his quantity is lower? I would rather have quality or work than quantity. Does he have combacks as compared with others?

Crout · July 2003

>He is a tech that works on trucks and has gotten older - he is not
>doing the work he used to.

So you want to reduce his pay because he's gotton older? Yikes. Unles he's now 32 and his work has slipped since he was 25, you guys are setting yourselves up for a big problem.

Sue · July 2003

If the employee is put on a PIP, consider withholding a raise at the time and if he improves, in say 6 months, give him a raise then. Calculate it retroactively.

reducing employee's pay

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