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Reducing base pay of 2 employees

HR inWAHR inWA 21 Posts
in HR & Employment Law Vote Up0Vote Down
We have 2 employees in one of our sales depts who were hired approximately 6 months ago at a higher base rate than our long term sales people. (I know - I'm not sure how it happened). Now the manager of the dept feels that she must reduce their pay down to the level of the long term people in order to meet her numbers. Her only other option is to lay one of them off. She is enhancing their commission structure so that they still have the opportunity to make as much if not more than they were making before.
I know that other companies make pay cuts, but I personally have never done it before. Do you think there is any exposure for us since we are only cutting the salaries of 2 people? To me it seems okay since they are only being brought down to the level of the others. (Morale is a whole different topic).
Thanks for your insight!
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Comments

  • 5 Comments sorted by Votes Date Added
  • Brad ForristerBrad Forrister 297 Posts
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    Can't think of a reason you'd have legal exposure, based on the facts you've presented. Are you making that commission structure available to the long-timers?

    Brad Forrister
    Director of Publishing
    M. Lee Smith Publishers


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  • PorkPork 1,271 Posts
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    Another thing to look at: was there a letter of agreement for employment or a letter of offer which provided a written understanding of the present income?

    I came to the company based on your good faith letter of offer, I had other offers, but your offer was stronger and more in line with my experience and preceived worth! I accepted this position, moved my family and now you are telling me you made a mistake! I don't think so!!!

    Is there something in writing for my attorney to review?

    If you find any thing which could place these thoughts in to concrete, it would be better to leave them where they are and decrease their commission opportunites to make them equal to the other sales folks, or give these two some additional valued responsibilities!!!

    PORK


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  • mwild31mwild31 1,441 Posts
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    Now that you know the legal stuff - what are you going to do about morale and hiring practices?
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  • HR inWAHR inWA 21 Posts
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    Good question!
    I will continue in my never-ending battle of sticking my nose into every manager's business. I am the first HR person my company has ever had (we have 150 full time employees and 350 part time employees). They don't quite know what to make of me yet - but they are coming around slowly but surely.
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  • mwild31mwild31 1,441 Posts
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    Congratulations on being the first! Hang in there, stay fair & consistent, put your foot down when necessary & enjoy the ride. x:-) Let us know how the situation shakes out.


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