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How to Handle a Pay-Cut

Hopefully, it won’t happen, but when times are tough, a company might come up with a need for executing a pay-cut. There are a few ways to look at this:

• At least you’re not being fired.
• Maybe this is negotiable.
• What an opportunity to find something new!

Yahoo Hot Jobs posted a great set of questions you should investigate before agreeing to any kind of pay-cut, but before getting to that, the most immediate and important thing for you to do when presented with a reduction in salary is to NOT ACCEPT ANYTHING:

When your supervisor breaks the news to you about your pay cut, do not accept anything immediately. In other words, refrain from conveying any type of agreement, either verbally or in writing. If pushed, you may say something to the effect of “This is a lot to process right now. I need to think about this and discuss it with my family this evening.”

Once you’ve had a chance to catch your breath, here’s the things Yahoo suggests you should ask your superiors, followed by some things you should ask yourself:

Questions to ask your boss(es) include:

• Is this a mandatory or voluntary pay cut?
• How much will your pay be lowered by?
• Who else is affected by the pay cut?
• How long will the pay cut last?
• Could there be retroactive reimbursement?
• How will this affect raises, bonuses and benefits?
• Are you going to have to work longer hours or take on additional tasks?
• What are the company’s plans to turn things around?

Questions to ask yourself include:

• How much do you need this job?
• Do you have faith that the company will recover from this setback?
• Can you trust what your superiors are telling you?
• Is it time to move on?

At the end of the day, if you feel you’re being strong-armed by the company into accepting less wages, the red flags should start waving. I recommend seeking legal counsel and weighing your options very carefully. To protect yourself, do what you can to collect and document information that you might need to use later on, if necessary, to protect yourself if a court-case develops. As yourself: “If I am suddenly forced to leave the company, will I need this?”

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Tags: jobseeker, My Side of the Desk