• 10
  • August
    2010

The flagging economy has been bad for business, but worse for a lot of the workers whose checks are paid by those struggling companies. Jobs have been cut, forcing production expectations to rise. As The New York Times wrote last week, many employers have also cut wages and hours for those employees who have stayed on.

Most of these pay cuts, reportedly, were levied in lieu of additional job cuts. According to the Times, hourly pay remains higher than ever, but wages continue to sink. To a certain extent, this is to be expected, and many workers have graciously accepted pay cuts that allow more to stay employed.

Still, it seems possible that a company might take advantage of the current economic climate by cutting wages or hours, inappropriately passing both off as necessary adjustments.  

In fact, as writer Steven Greenhouse points out, "a few (businesses) have seized on the slack labor market and workers' weak bargaining power to cut pay and thereby increase their profits and competitiveness."

Such practices are a bit questionable, to say the least. Regardless of the economy, business owners and managers still have certain obligations to their employees and the law still enforces certain standards in regards to fairness.

If you suspect your company of improperly cutting wages or withholding things like overtime pay, you should still feel empowered enough to question those decisions. If you are being cheated, then you and your co-workers may be entitled to additional compensation.

The best defense against this sort of behavior is simply to be alert and aware of changes that seem out of place or uncalled for. If you have questions, your employer should feel comfortable answering them. If not, they may find themselves answering to the law.

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