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pay reduction

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  • pay reduction

    i know this is an old thread and sorry to bump it up, but I was recently demoted and given a paycut from salary $26,500 to ~$16,120 ($7.75/hr). I am making like 61% of what I did before. Would that be considered a large enough reduction in pay? (I am from Illinois btw, if that matters here)

  • #2
    I moved your post into its own thread instead of hijacking an old one.

    While I don't know IL laws on the subject, a 39% reduction would qualify in many states, so it certainly won't do any harm to try.
    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.


    • #3
      The problem is, you'd have to quit to find out for sure.
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


      • #4
        yeah, i know... my cousin is a lawyer in NY and I'm maybe he has a connection/friend in IL that could give me some free advice. I know I need to an attorney and I need to talk to UC before I quit... however if i do get constructive discharge... my company doesn't like to pay unemployment and has been known to give severage pay when this happens... <-this is my goal


        • #5
          I wouldn't count on severance. It would be your choice to quit based on the large reduction in your pay. I'm not sure what other advice an attorney could give, but I wouldn't say not to talk to one. And even then, receiving severance pay does not mean you can't file for UI and such a clause in any severance agreement which prohibited you from doing so would not be enforceable.
          Last edited by Pattymd; 01-26-2008, 02:53 PM.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


          • #6
            well, did a lil more research on this tonight... and found this out... that if i can get an attorney to take my case and I sue my former employer

            "successfully, then the penalties can be severe. The usual penalties include both back pay (the amount of wages the employee would have been paid had they continued working for the company up until the time of the lawsuit) and front pay (an amount based on the employee's remaining work years and the expected length of time it will take him or her to find a similar job), as well as reimbursement of attorney fees. There also may be monetary damages, compensatory damages for pain and suffering or mental distress, and punitive damages of up to $300,000 in some discrimination cases. Employees who win constructive discharge cases are usually not reinstated, however, because it would be counterproductive to return them to an intolerable working environment."


            • #7
              Sue for what? Do you have an enforceable employment contract that you didn't tell us about? Short of that, it is not illegal to reduce an employee's pay as long as advance notice is given. Having your pay cut, even substantially, is not "intolerable working conditions".
              Last edited by Pattymd; 01-27-2008, 07:26 AM.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


              • #8
                It is certainly possible for an employee to sue their former employer for big money and win, in much the same way it is possible to buy a lottery ticket and win big. The chances of winning are probably similar, although the lottery is more likely to actually pay off should a win occur. The difference is that pretty much anyone can win a big lottery ticket while winning a big settlement is largely a function of having case law on your side. This last point is easy to determine. If you are in a favorable position you should have no problem find a lawyer willing to work on a contingent basis for a chance at a big pay day. Not being able to find a lawyer willing to put in serious hours on a contingent basis on the other hand say poor things about the chance of winning.
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)


                • #9
                  Sue for constructive discharge. They have done the same thing to two other employees recently and they decided to quit, also when I went to talk to the HR department and confronted them on this saying, "Basically you guys are trying to get me to quit" he didn't respond with a verbal "yes" but he did shrug his shoulders, put his arms out and rolled his head left to right in a manner as which he was agreeing with me but couldn't say anything. (<- I know that won't hold up in court.) But after again searching last night I found this...

                  "The court must weigh several factors to determine if a constructive discharge has occurred. In Brown v. Bunge Corp., 207 F.3d 776 (5th Cir. 2000), this court listed a number of such relevant factors:19 "Whether a reasonable employee would feel compelled to resign depends on the facts of each case, but we consider the following factors relevant, singly or in combination: (1) demotion; (2) reduction in salary; (3) reduction in job responsibilities; (4) reassignment to menial or degrading work; (5) reassignment to work under a younger supervisor; (6) badgering, harassment, or humiliation by the employer calculated to encourage the employee's resignation; or (7) offers of early retirement [or continued employment on terms less favorable than the employee's former status]. . . ." Id. at 782 (quoting Barrow v. New Orleans Steamship ***'n, 10 F.3d 292, 297 (5th Cir. 1994)). However, "[t]he list of factors in Barrow is non-exclusive." Ward v. Bechtel Corp., 102 F.3d 199, 202 (5th Cir. 1997); see also Barrow v. New Orleans Steamship ***'n, 10 F.3d 292, 297 (5th Cir. 1994)."

                  -I will know after this week if my claim is viable or not. Like you said, if an attorney is willing to take my case right away then I have a better chance then if I keep getting turned away.


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