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Reducing future earnings

Answered by: 

Question: 
Can an employer make a prospective reduction in pay for a salaried exempt employee due to the economic downturn?
Answer: 

An employer is not prohibited from prospectively reducing the predetermined salary amount to be paid regularly to an exempt employee during a business or economic slowdown, provided that two important conditions are met.

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Learn more about Gerard Panaro’s webinar Alternatives to Layoffs during COVID-19

First published on 05/03/2020

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