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Cutting salaries of exempt employees

Answered by: 
Gerard Panaro

Question: 
In general, can an employer reduce an otherwise exempt employee’s salary due to a slowdown in business?
Answer: 

Ordinarily, no, not without loss of the exemption. However, there are some circumstances in which a prospective reduction in salary may not cause a loss of the exemption. There may also be situations in which it doesn’t matter.

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

First published on 04/19/2020

Filed under: 
Operations
Filed under operations as: 
Operations
Human Resources

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