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Reduce Hours - Salary Employee Maryland

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  • Reduce Hours - Salary Employee Maryland

    I am a salary exempt employee. Management is considering a 32 hour work week temporarily until business picks back up. Is it legal for them to reduce a salary exempt employees hours and reduce their pay to reflect the new hours?

  • #2
    Generally speaking, yes, although SOME courts have ruled that tying the hours to the salary, CAN jeopardize the exempt status. I don't know what the courts in your district have decided. The employer would be on much safer ground if s/he just reduced the salary and left the hours alone.
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    • #3
      Agree with Patty since salary isn't tied to an exempt employee's hours anyway. It would be best just to reduce salary with no mention of a change in hrs.
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      • #4
        Agreed with the other two answers. Flip the question. If I am your employee and leave ****ed for some reason, I would routinely file a 29 CFR 541.602 claim against your company on my way out the door. I would claim that my employer violated the salary basis rules. As Patty indicated, some courts would buy that argument. Presumably some state DOL's would as well.

        Alternatively if you just reduce the salary and leave the hours along, you have left that door closed. Trying to link the reduction in salary and hours is not a certain loser, but it creates doubts that would not have otherwise existed. Smart employers would not create that doubt in the first place.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)


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