Mandatory OT for Salaried Employee and cancelled bonuses

[myelumia]

What is the name of your state (only U.S. law)? CA

Employer has mandated that Salaried branch managers work open til close 8:30 AM til 7 PM 6 days per week. This amounts to about 66 hours per week. Can they do this? On top of this, they are also reducing the Salary 10%! "you should be happy you have a job"

Additionally, 2008 had an incentive program where if you achieved certain goals you were to be rewarded with a cash incentive. Can the employer say in Jan 2009 that they will not pay out 2008 earned incentives? I can understand cancelling any future incentive programs, but if the program was in place, didn't the employer have a contract with the employee and is still obligated to pay out any earned incentive as part of the salary agreement?

 

[Beth3]

Can they do this? Yes.

Can the employer say in Jan 2009 that they will not pay out 2008 earned incentives? Very likely. I expect this is a variable compensation plan that is set by company policy and it's quite likely the policy states that management can modify, discontinue or cancel the program at any time.

I can understand cancelling any future incentive programs, but if the program was in place, didn't the employer have a contract with the employee and is still obligated to pay out any earned incentive as part of the salary agreement? See above. One would have to read the incentive policy to know for certain.

Sounds like your employer is being hit hard by the economy, as are a lot of companies.

 

[myelumia]

yeah, it's tough to keep your bottom line when profits dip from 4.5 billion to 1.5 billion - someone's got to pay.... The CEO says he's cutting his salary 5% (I suspect not his total comp package - just Salary). Amazing that he would sign off on a larger pay cut for the rank and file.

Interesting is that this mandatory OT and pay cut only applies to one division and not another. It also does not apply to a recently aquired division and their employees who work the same job description, but are higher paid to begin with. Although that may change once they are fully "merged".

While it may be legal, it is not "right" and will clearly result in a lower moral for those affected.

 

[cbg]

FYI, in the absence of a legally binding contract or CBA that specifically says otherwise, mandatory overtime is legal in all 50 states. There is no requirement that either all divisions have it or none do; what division you work for is not a protected characteristic so your employer can legally pick and choose which divisions do and do not have to work OT.