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Wage Reduction AND a change in contract start date?? - IOWA Iowa

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  • Wage Reduction AND a change in contract start date?? - IOWA Iowa

    My employer just announced that they will be cutting everyones wages - I heard a rumor that in Iowa they can also, because of a pay decrease, reset our "contractual start date". Is this true? I am just curious because this could mess with vesting, pension, PTO accrual, etc.

    Thanks!

  • #2
    Hard to say. I can say that all benefits are not created equal. Certain benefits (pensions, 401(k), health care plans) are ERISA level benefits. There is a very formal plan level requirement, the plans are on file with the government and the employer must give access to the employee of the Summary Plan Document (SPD) upon demand. Chaning the provisions of an ERISA level plan is not impossible, but is not something the employer can do on the fly by themselves.
    http://www.dol.gov/dol/topic/health-...nformation.htm

    All other benefits are not normally ERISA level. Could a really dumb employer make one of these "other" benefits ERISA level. Maybe. I have read administrative decisions about employers who deliberately made their vacation plans ERISA level by funding them through a 3rd party trustee. But this is very unusual and arguably very dumb. Most of the time the "other" benefits are sort of a function of the company policy but also very much a function of how the state views "other" benefits. Some states care, some states do not care, and many states do not have a clue what you are talking about if you ask them

    Your state is not my state, so no idea what camp your state is in.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Iowa is a union-busting non-labor friendly state.

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      • #4
        CorporateGreed, please watch the dates of the threads you are responding to and don't respond to dead threads.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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