Unfair Wage Cuts / Practices!?
In mid April of this year, my company came out with a letter, which was given to each and every employee that said : Effective April 27, 2009, due to the economy, ALL employees who haven't yet received wage / incentive cut(s), will receive a 10% cut in wages and benefits. First off, I know for a FACT that not ALL employees received pay / incentive cuts. Secondly, earlier when I referred to those who had NOT already received pay cuts, would. They did NOT receive a pay cut. They actually kept their same pay rate, but they are getting a mandatory 1/2 day (4 hours) off each week. In essence, they didn't actually receive any cut in pay whatsoever, as they are paid (at their regular rates) for each and every hour worked. They do only receive 36 hours as opposed to 40, but they have a half day off, whereas I still have to work 40 hours at 10 % less on the hour. For example, I made $10.00/hour, before the cuts. After the 10% cut, I now make $9.00. $9.00 @ 40 hours = $360 . . . The other people still make $10.00/hour and only work 36 hours. $10.00 @36 hours = $360 . . . No one is ever okay with their pay being cut, but if everything and everyone was treated equal I could cope with the situation a tad better. I mean, I'd like to get a half day off each week and still make as much as the guy working 40 hours, ya know? Is there any legal action I can take against my employer? As this is so utterly and completely UNFAIR!
Best Answer
Unfair is not always illegal. Unless you are working under a union contract or a written employment contract you are an at will employee. At will employees have very few rights - they can be terminated with/without notice for any/no reason. They have the right to not be discriminated against on the basis of age(over 40), race, sex, ethnic origin, nationality, religion, disability, marital or military status. (See www.eeoc.gov) They also have the right to be paid for the time worked (see local DOL office).
In your case the employer has the legal right to reduce pay on all employees due to the economy. From the example you presented it looks like the employer attempted to be fair, as both employees end up with the same pay.
If you feel that you were singled out due to discrimination on the above listed bases, you could file a discrimination complaint with the EEOC. As a practical move, unless you have solid evidence of discrimination on one of those bases, doing this will only make you look like a problem employee and may lead to termination. Also if you quit in protest you probably will not get unemployment benefits.
Source(s):
Illinois employment attorney