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  1. #1
    Join Date
    Feb 2014
    Posts
    1

    Default Forced to Accept a Salary Reduction

    My question involves labor and employment law for the state of:Michigan
    My employer has recently come to me to modify my job title and salary/benefits. I have been in the position within the organization for one year, but have been with the company for two years.
    My employer is requesting that I step down from my current position, take a significant salary reduction, move into a commission based pay structure, and many of the job responsibilities are going to remain the same. I have been told that this change will take effect in two weeks, which does not even provide enough time for any negotiations or planning from my end.
    My new contract states that I must work the schedule approved by the president of the company, which can include five, six, or even seven day work weeks...
    Do I have any rights in this matter at all, or should I begin to seriously hunt for a new opportunity?
    Please let me know if I have left anything out which might be helpful in any replies.
    Thank you!

  2. #2
    Join Date
    Aug 2013
    Posts
    284

    Default Re: Salary Reduction Forced

    If you have a current active contract, have a lawyer review it. Past that, nothing you have said so far is illegal or all that unusual. Employment in the U.S. is inherently At Will, meaning the employer can change the conditions of employment on a go forward basis (absent a contract or CBA to the contrary). You mentioned a commission based pay structure. For the sake of discussion you mean 100% commission. That is legal for Outside Sales only. All other employees tend to be subject to minimum wage and overtime rules, although there are a ton of exceptions in the federal FLSA law. Example, there is an Auto Dealer exception, which eliminates the requirement that the overtime premium be paid for sales people, but leaves the normal minimum wage requirements in place. The employer can say that the employee is commission only, but the legal MW requirement stays in place no matter the employer says.

  3. #3
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: Salary Reduction Forced

    Your other option is to reject the new job assuming that it will be unsuitable when compared to the job you have now, and take a break and collect unemployment while you look for a new job.

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Salary Reduction Forced

    Please do keep in mind that in most if not all states, UI will pay only a fraction of what you have been earning, and unless the pay cut is a minimum of 50%, quite likely less than you would earn under the new pay structure as well.

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