Is it bad to cut the hours of an employee?

Is it bad to cut the hours of an employee?

Cutting the hours of a problem employee should NEVER be used as discipline or in an attempt to make an employee quit. It’s simply too dangerous: you’ve just laid perfect groundwork for a possible retaliation or discrimination claim.

When to cut hours for a small business?

Cutting Hours: Approach with Caution! As a small business employer, budget constraints, scheduling demands, and other considerations may occasionally prompt you to reduce the hours of some or all of your employees. This may even involve reclassifying one or more Full-Time (FT) employees as Part-Time (PT). Be careful, though!

What happens if you cut your ft hours?

As mentioned before, FT employees may stand to lose valuable benefits if their hours are reduced too far, and may decide to seek work elsewhere. If a good employee decides to leave, your practice may feel the loss keenly, and you’re left with the expense of rehiring.

Is it legal for an employer to cut your pay?

If an employer cuts an employee’s pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee’s race, gender, religion, and/or age). To be legal, a person’s earnings after the pay cut must also be at least minimum wage.

What happens if your employer Cuts Your hours?

Another side effect of a major cut in hours could be loss of benefits. If some employees are cut from full time hours to part time, they may lose benefits such as health insurance. If this does happen, your employer is REQUIRED to give you COBRA though many employees do not even realize their entitled.

What should I do if my hours get cut?

A cut in hours can take a stable life and put it straight into crisis mode, and it can often necessitate some kind of professional change, whether it means finding a new job or making demands at work. So, to answer Morgan’s question, it’s clear that Morgan should do something, but quitting shouldn’t be the immediate first response.

Is it legal to cut pay for all employees?

Carefully. An across-the-board wage cut which applies to all employees presents the lowest legal risk because an employee will have a difficult time arguing that the employer treated them differently based on a protected characteristic, such as race or sex.

Do you have to give notice when cutting hours?

3) Does an employer have to provide notice to an employee before cutting hours or compensation? Generally, yes. Most state wage payment and collection laws require employers to provide employees with reasonable advance notice for any change in the employee’s pay rate, salary, or covered salary hours.