Employment and Labor

An Alien Concept Creates Limits on Employee Pay Reductions

8/23/2016 | Article

Employment Law Monthly - August 2016

By Janelle Edwards-Stewart

During bad financial times, such as the 2008 recession, it is only natural for employers to seek to cut costs. For most employers, the greatest business expense is employee salaries. Layoffs, reductions in force, and even re-categorizing employees into lower paying positions are common means to reduce overall salary expenses. However, employers should be warned that, if the employee is a H-1B employee, re-categorizing may not be an option. Last month, Valero learned this lesson the hard way. 

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