3 ms·
You can’t quit paying an employee if you lose the client he’s working for; you have to keep on paying his wages and other expenses even when you no longer have
by tarr11 8y ago
You can’t quit paying an employee if you lose the client he’s working for; you have to keep on paying his wages and other expenses even when you no longer have revenues coming in to balance it.
This isn't quite true if said employee is not salaried. You can still have an hourly employee and then cut their hours if there is no work for them. Employees may not like it, but businesses do this all the time. There are some minimum hours according to each states wage laws, however.
- ryandrake 8y agoI worked for a startup that hit hard times, as a salaried employee. They cut us all to 1/2 paychecks for months, then down to 1/4 paychecks. So it’s definitely possible. Probably nobody ended up below minimum wage so legal too? Some people left and others accepted IOUs.
- rgbrenner 8y agothe minimum for a salary is currently $913/wk (~$47k/yr).. otherwise they have to pay for overtime. From 2004-2016 it was only $455/wk though (~$23k/yr).
- dragonwriter 8y agoThe minimum depends on the justifying job function (exemption is based on past and job function), and states like California often have much higher minimums than the federal minimum.
- driverdan 8y agoWhy would you continue working there for 1/2 cut pay?
- ryandrake 8y agoThe founders were genuinely good people and I was young enough to risk that we’d be made whole. Also the dot com bubble was just recently obliterated so I was lucky to have any job at all.