Can We Pay our Salaried Employees Less if we Revert to a 4-day - 32 Hour Workweek?
Please help with this dilemma. I really need the brightest and best to jump in on this one.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The very real effect of this all-consuming economic downturn is finally making a tangible impact on my Company. The Company President is hoping to announce a furlough in the form of a 4-day, 32-hour workweek. The President feels that it will be perfectly legal if we craft a "Hardship Policy" to allow us to pay our salaried employees one day's wage less than they would normally receive on a normal 5-day, 40 hour work week, as a cost-savings measure.
My analysis is that this is neither possible nor legal, as salaried employees are to be paid their full and regular salary for any part of a week that they work, especially if they are ready and available to perform their duties but are constrained by the Company.
My boss wants me to create this new policy immediately, but I could find nothing in legal that would permit us to do so. What say you?