I notice several companies are cutting pay for workers. Have a family member who took a 10% cut in pay two weeks ago. The company is now hinting they may cut again, up to 25% of the current pay. Anyone experiencing this where they work?

Fortunately, no. Some have seen a reduction in hours though.

My dad told me the other day that his girlfriend's son took a massive pay cut, 40% if I remember correctly. He is a big IT dude for a company.

If the businesses are like some of the charitable regs then if you maintain 75% of your salary you qualify for the loans, grants etc. etc. This gives employers several options on how to cut 25% of their salary and get the funds. That can come with pay cuts or permanent layoffs. Not a great way to do business but I am sure most businesses will sort out what is best for them.

Bryce

Under normal circumstances I say NEVER cut anyone's pay. It causes hard feelings and that employee will never be loyal again. It's better to let someone go so they can find another position somewhere else.

However, these aren't normal circumstances. If you let someone go now, they won't likely find another job for a long time. Cutting pay may be the kindest thing to do - it's still going to ruin working relationships and those employees will either become bitter or leave as soon as the economy improves.

15% cut for me plus since its slow they are doing furloughs about every 2 weeks

I know of a nursing home that is giving workers a "temporary" $2/hr raise! Morale is getting really bad. All women to boot! The only thing worse than a crabby woman is 40 crabby women.

I've gotten to work 6 days in the past 8 weeks. As an independent contractor this stuff hit my work way before the shutdowns went into effect. Definitely thrown a wrench into my plans for the year

I work for myself and work is slow so I have had to cut my own pay, my one employee has not taken a pay cut but I feel bad I cannot keep him busier.

10 % cut is much better than a 100% cut

Not if one qualifies for the $600.

It blows my mind that people could get a short term layoff and make more than their coworkers could still be on the payroll.

Yes , i knew this would come up ......and i agree its complete bs

It is sad to here that some employers will take advantage of loans and are able to cut wages and have the loan forgiven. Always a way for some one to figure out a legal way to hold down an hrly employee. My company is doing the opposite. We are all working If you or a family member becomes ill. You will still maintain your full pay and benefits and able to stay home with no worry of paycheck. Everyone is different.

My employer here in Alaska cut pay for managers. 5 days later they filed chapter 11!!!
mt

We're making pay, bare!y.

Need to end this soon tho!

For many firms it may be smart to file Chapter 11 and then the court system can work out payment structures with the federal monies to do the reorg for the firm. The loans and grants will hold the firms to paying salaries for a time, but if a firm was smart and could not stay competitive they could take the loans, keep the salary up for a bit then file and lay off staff and the firm could file later and have the court system work to keep the federal monies.
In the past we have seen just about every conceivable way to skin the cat and I am sure with these huge amounts and almost no oversight there will be much meowing going on for years.

Bryce

Many businesses are taking huge pay cuts also and you can't expect them to swallow it all themselves. They have fixed costs that current revenues are not covering. When the economy comes back so will your original pay rate. Get by the best you can and hope, like everyone else, that it doesn't last much longer.

Yup, now maybe you can understand what happens to the Farmer anytime every year.

Rather than cut our hourly rate they reduced our hours by 11 hours a month which works out to about a 13.75% pay cut.

10% for all salaried employees.