Jay E
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I don't have any legal advice for you, but I would think as an 'at will' employer, you can get rid of people for any reason so I would see no reason why you couldn't offer this.
I think it is very admirable of you to offer the option of taking a pay cut....especially during this time of year.
Less money for someone and their family is much better than no money. You are doing the good thing. I wish more employers were like you. |
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The Loving Addict
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I would use the term "laid off" and also give them a benefits package that lasts for 3-6 months while they find a new job.
Personally, I think you'd be a jerk to up and fire someone and give this unrealistic ultimatum. If they respect you (which it doesn't sound like they have much reason to right now considering they're getting screwed either way) they will understand a pay cut, but will expect their salaries to return to normal and grow later. |
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countryguyhfc
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Yes you have that right. But consider the consequences.
That employee and many others may not take this well and you may loose good people, even those that you did not consider giving a pay cut to. |
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d g
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You can do whatever you want. |
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sky64
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My question is this, how much is "exorborent"? Did you mean exorbitant? How much are YOU pulling out of the business? Take a pay cut or get fired.....hmmmm. Not much of an option here. My way or the highway. Sounds like you certainly could offer this ultimatum, but ask yourself why the previous owners paid their employees so well and you are unable to. Perhaps you need to look at your management skills, fearlessly and honestly. What are you doing that could be done better so as to continue current wages? I would first suggest you do this and maybe give these employees real insight as to why you may have to enforce pay cuts and go so far as to ask these employees what they think could be done to AVOID these pay cuts. If nothing can be done, try to find other options like offering stock in lieu of pay or more flexible work hours as a no cost good will offering if you must cut back their wages. Don't burn bridges and don't follow corporate patterns on how to run a business. The neck you cut could be your own. |
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thephalkinparadox
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Let them know how business is going and what must be done. If you only really need to give them pay cuts, thats better than firing them. Let them know. Don't threaten them. Usually an "ultimatum" is associated with threatening people.
Just let them know whats going on and what must be done. Its that simple. You know, like "Listen, guys... business has been going kind of slow and ...." That kind of thing. |
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Matt S
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Sure i believe that happened to my friend. |
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colormehappy
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cut back their hours instead. explain to them since business is slowed you will only need them part time. they will look for work elsewhere if they aren't satisfied with the arrangement. if this option doesn't appeal to you then yes...paycut or quit. if you fire them you will have to pay more money towards their unemployment. |
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Not Socialized
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Sure you can...just be sure to do it in writing to avoid as much legal fallout as possible...
You will probably get a better reaction from the employees if you explain the situation to them... |
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krazykyngekorny
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You tell the employee that you will have to abolish his job because it is costing too much. Then, if he wants to work, he will volunteer to take a reduction.
______________________________________...
KrazyKyngeKorny(Krazy, not stupid)
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯... |
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rickb3825
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it's your business, in an "at will" state, you can pay what you like. but remember when you purchase a business, most valuable asset left by the previous owner is the employee. |
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Bill
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Yes, but you want to be clear that this isn't punitive. Apply it in a nondiscriminatory manner. |
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Neescousin
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discuss the options will an attorney that practices business law first. Most 1st consultations are free. |
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jmattiesmufc
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As a SBO you have to do what you have to do to stay in the black. Rather than fire them, tell them that they have to take a paycut or be asked to resign with assistance, meaning that you keep them on board until they find another job (within reason, you don't want them hanging around for like 3 months)
Good luck! |
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poofbagel
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Yeah, if you're in the right position and you have a good enough reason. But it's still not cool--be nice about it. |
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heylady689
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Im in jersey and a friend recently was moved to part time in leiu of being terminated due to budget cuts. go that route first. |
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killbasabill
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Just tell them like it is. I have seventeen jobs at $8.50 per hour and none at $21.90. If you want to work here, you'll have to get one of the lower paying jobs.
Hope this is helpful, after all it worked for Chrysler when Lee Iacoca took over. |
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crazzinjunsmith56
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yes, youd have to draw up papers to say whether it was permanant or just during the slow down. companys have wage rollbacks all the time usually for 1 to 2 years.if you say it just like you did here without the fact you think they are over paid, i think they will accept a pay cut over termination, or as they say downsizing and your position will be eliminated.
at work we hadda guy welsh on every one for 5 years and they told him no raise no raise, so finally he said he deserved a raise cause he came to work every day. even though he didnt remember anything or had to be spoon fed every job every time he started a new one. |
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lita
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yes |
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stvc1961
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Its your company..do what you like ,but for a pay cut, be sure ,that only the least competant (who couldnt get another job will stay) weed em out your self with pink slips and continue to pay your best people well . Hope buisness improves. |
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mol_10_rock
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if its an at will state, the pay cut doesn't even need to enter into the conversation. all you have to do is say the magic words "Your services are no longer required." :) |
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George r
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I think you're probably a liar.
Keep your workers.
Was an accountant for about a year. |
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