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  • Huge salary reduction Maryland

    I was notified today that because of financial issues in our very small company everyone would be going on 50% of their salary at the end of the month. I was already underpaid and there is no way I can afford to keep a job at that salary. I was asked to work many holidays and weekends because of the limited staff and as a result have accumulated alot of vacation time. I'm worried the company is going to pay out my vacation time at the reduced salary (I have over 30+ days accrued), can they do this if I never accept the reduced salary? I was told by someone to not give any notice that I am leaving because this would mean I'm leaving at will and may not be eligible for unemployment. What would be the best way to leave this mess? I have almost 4 years of outstanding evaluations with this company and feel like I have been taken advantage of.

  • #2
    Yes, legally, they CAN pay out your accrued vacation at your current rate of pay; there is no law stating that vacation must be paid out at the rate at which it was earned. (I'm not sure what working lots of holidays and weekends has to do with accruing lots of vacation, as most vacation plans don't accrue based on hours worked, but on a time frame, such as XX hours monthly.....but, whatever. )

    If you never "accept" the reduced salary by quitting before the reduction is effective, then it is arguable that your salary was NOT, in fact, changed.

    And although quitting usually disqualifies you from unemployment benefits, it is likely that a 50% salary cut would be deemed "good cause connected with the work" and would not otherwise disqualify you from receiving benefits.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Agree with Patty.

      However, your employer does not need your agreement to lower your wages. In MD they must give one period of notice but they may set the rate vacation will be paid. This assumes of course that your employer has a policy of paying out vacation at termination.

      A reduction by 50% of your pay would likely qualify you for benefits under UC. Leaving with no notice does not have any effect on benefits but it is highly unprofessional.
      I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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