Author Topic: What is going on with pay cuts due to COVID  (Read 1927 times)

nic1

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What is going on with pay cuts due to COVID
« on: August 11, 2020, 07:18:58 PM »
Healthcare provider for 18 years, in a specialty that I have been at for almost all of that time.  In April  my hourly rate was cut 30 percent, I was hourly at the time, which is what I negotiated.  This has not been widespread across all specialties and not widespread in my specialty, but I know others that have dealt with this due to decreased volume during that time.  So starting in April, I worked the same amount of hours for 30 percent less.  Really sucky, but I understood and assumed once volume was back up, that my pay would go back to normal.   I am back to doing at least as much work as before COVID.
Well, no such luck.  I know most other providers are back at their previous pay.  I recently broached this with my bosses and they said, sorry, we cannot do anything right now, we need more time. 
I know I am paid at probably the 95th percentile in my field.  I think my bosses know that and probably are thinking I make too much, but a year ago they agreed to this rate and I bring in almost 3 times what I make in salary into their bucket of money, so I am self supporting. 
I know I do not have any leverage at this point besides leaving and I do not think I will make more at another location unfortunately, although I think once COVID situation is over I could.  I also left a work from home position that paid 20 percent more than I am making now a year ago because I was struggling with the isolation of being at home.  I did not regret the move at the time, but I still do work for this previous employer and he has kept everyone's pay rate steady even though he has had a huge decrease in volume.  He has floated us, and done the right thing.  So, now I am struggling with the regret of leaving that opportunity.
So, I guess I am just looking for input on where everyone else is as far as salary, hours, furloughs?
I think I would have a much easier time with my hours being cut, no bonus, or honestly even being furloughed, it is the doing the same work and hours for 30 percent less that is burning me up. 


LWYRUP

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Re: What is going on with pay cuts due to COVID
« Reply #1 on: August 11, 2020, 07:28:58 PM »
My salary is steady, no idea whether I will get my bonus. 

Unfortunately, I think you need to either find a new job, agitate more for a raise, or do less work.  Did they tell you when would be enough time?  What would happen if you asked to work 20% less. 

SavinMaven

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Re: What is going on with pay cuts due to COVID
« Reply #2 on: August 11, 2020, 07:29:55 PM »
It does suck to compare this to the prior stay-at-home position, but, that wasn't a good fit for you, and so it was worth it to leave.

If you are at the 95th percentile for pay for your field, where does the 30% pay cut land you? Are you still above the median? Knowing you bring triple your pay into their coffers is rough, but, that's how it is - just like how the ER bill changes based on what your insurance is - not all parts of healthcare are self-supporting so those that are, have to buoy those that aren't.

I would say overall it sounds like you're still in good shape. There are layoffs everywhere, even in healthcare. I'd stay put and keep quiet, unless you have the FU money, and desire, to jump ship.

MrsSpendyPants

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Re: What is going on with pay cuts due to COVID
« Reply #3 on: August 11, 2020, 07:49:20 PM »
I lost all of my commission which was 50% of my pay.  So doing the same work for 50% less with no idea of when it'll be back.  It's terrible.

TheFrenchCat

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Re: What is going on with pay cuts due to COVID
« Reply #4 on: August 12, 2020, 09:55:14 AM »
I think some work places are using the pandemic as an excuse to cost cut.  My work cut their employer 401k match since they said their numbers didn't work for the quarter before the pandemic started.  Not as big of a deal as 30%, but our work has been super busy since this all started.  So I don't understand why they used COVID to justify it. 

mm1970

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Re: What is going on with pay cuts due to COVID
« Reply #5 on: August 12, 2020, 10:56:09 AM »
It sounds like you don't have much leeway, sorry - especially if you are at the 95th percentile.  If you think you can get more elsewhere - go for it.  But if you can't, then they have you.

I think a lot of the cost cutting is simply necessary, due to overall decreased business.  My income was not cut (but is already 30% low).  My husband's was not cut, but we'll see how next month's raise goes.  He's probably at the 90th percentile at his company.  (If we were willing to move to the Bay Area, he could probably almost double his salary and I could likely add a good 50% to mine.  But no thanks.)

I have several friends who have been out of work for months.  Business owners in hospitality (wine tours, day spas).  One friend worked as a chef for a local cheese shop and restaurant, and it closed.  So she's unemployed, and then the landlord raised their rent. Who does that during a pandemic??

expatartist

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Re: What is going on with pay cuts due to COVID
« Reply #6 on: August 12, 2020, 12:51:06 PM »
All our regular staff have had salaries frozen for next year. I was due for a 10% raise but am happy with what I earn now. Our management had pay cuts, not sure how much.
We are in Hong Kong in the education industry, which tends to be better paid than in the US. So we can afford to tighten our belts, and enrollment is down so we understand the necessity of it. In Asia we generally have more of a "we're all in this shit together" than in the US.

Best of luck whatever you choose. Challenging times for us all.

Ockhamist

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Re: What is going on with pay cuts due to COVID
« Reply #7 on: August 12, 2020, 01:11:04 PM »
For some employers, the cuts are necessary.   A lot of businesses have lost a lot of business, and that has to flow through.

There is, though, the saying "never let a good crisis go to waste."

In my workplace, certain cuts will definitely be necessary.  However, management is also using that necessity to push through things that they've long wanted to do irrespective of any particular need, justifying changes that have nothing to do with the present crisis by citing the present crisis.

Man I'd love to rant about a few specifics, but I'll just leave it at that.

Finances_With_Purpose

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Re: What is going on with pay cuts due to COVID
« Reply #8 on: August 12, 2020, 01:34:19 PM »
Sounds like time to leave, unless you're not going to make enough to justify leaving anyway.  They've cut your reason to stay, from the sound of it, so you may as well consider alternative options. 

JLee

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Re: What is going on with pay cuts due to COVID
« Reply #9 on: August 12, 2020, 01:55:50 PM »
Our 2020 profit sharing bonuses (to be paid in 2021) were killed and we also lost a week of PTO for 2020. Salaries are the same, workload/hours have skyrocketed.

big_owl

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Re: What is going on with pay cuts due to COVID
« Reply #10 on: August 12, 2020, 02:10:24 PM »
Yeah, sorry, that wasn't the terms of our arrangement when I hired in.  Randomly dock my pay 30%?  Cool, I'll be cutting my hours by 30%.  Presumably my services are no longer needed full time if there's not enough business coming in to justify my full salary, right boss?

Heck I'll volunteer to take a 50% pay cut "for the good of the company"....if I get to work 50% of the hours. 



YttriumNitrate

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Re: What is going on with pay cuts due to COVID
« Reply #11 on: August 12, 2020, 02:23:32 PM »
I know I am paid at probably the 95th percentile in my field.  I think my bosses know that and probably are thinking I make too much, but a year ago they agreed to this rate and I bring in almost 3 times what I make in salary into their bucket of money, so I am self supporting.

Looking at this situation from your bosses' perspective, the question isn't how much you bring in relative to your salary, it's how much will they lose if you leave. If your patients are 100% portable and will follow you in a move, then you've got a lot of negotiating power. If you can easily be replaced with someone else who will work for less and bring in the same amount, then you don't have much negotiating power.
« Last Edit: August 13, 2020, 06:03:45 AM by YttriumNitrate »

SunnyDays

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Re: What is going on with pay cuts due to COVID
« Reply #12 on: August 12, 2020, 02:36:18 PM »
Don't you have a signed contract stipulating the terms of the job, including salary?  If so, when does that contract expire, or does it?  I would think they would b legally bound by it and cannot make you work the same number of hours for 30% less.  You might want to drop the word "lawyer" into a conversation with them.

gooki

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Re: What is going on with pay cuts due to COVID
« Reply #13 on: August 13, 2020, 05:18:18 AM »
I’ve taken a 2.5% pay cut. But it’s limited to six months. Like you I was already well paid. I wouldn’t have agreed to a 30% cut, unless there was a 30% reduction in hours.

nic1

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Re: What is going on with pay cuts due to COVID
« Reply #14 on: August 13, 2020, 02:43:28 PM »
So I do have a contract. They changed it and pretty much said take it or leave it. Of course they said it's temporary,  but I never imagined 5 to 6 months. I would have happily cut my hours 30 percent,  but that's not what they want. They want the same amount of work for 30 percent less than they agreed on.  It's been frustrating,  I really don't know many people in this situation. Most had hours cut as opposed to such a huge salary cut but same hours.
« Last Edit: August 13, 2020, 03:05:03 PM by nic1 »

JLee

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Re: What is going on with pay cuts due to COVID
« Reply #15 on: August 13, 2020, 04:19:16 PM »
So I do have a contract. They changed it and pretty much said take it or leave it. Of course they said it's temporary,  but I never imagined 5 to 6 months. I would have happily cut my hours 30 percent,  but that's not what they want. They want the same amount of work for 30 percent less than they agreed on.  It's been frustrating,  I really don't know many people in this situation. Most had hours cut as opposed to such a huge salary cut but same hours.

What's the point of a contract if it can just be changed...?

MissPeach

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Re: What is going on with pay cuts due to COVID
« Reply #16 on: August 13, 2020, 04:51:30 PM »
What's the possibilities on the other side of the coin - looking for something else? I recently found a new job. There are companies hiring. There are some companies doing well right now. No need to stay at a place that you can't trust that is taking advantage.

big_owl

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Re: What is going on with pay cuts due to COVID
« Reply #17 on: August 13, 2020, 06:45:44 PM »
So I do have a contract. They changed it and pretty much said take it or leave it. Of course they said it's temporary,  but I never imagined 5 to 6 months. I would have happily cut my hours 30 percent,  but that's not what they want. They want the same amount of work for 30 percent less than they agreed on.  It's been frustrating,  I really don't know many people in this situation. Most had hours cut as opposed to such a huge salary cut but same hours.

Times like this are why it's so fun to have FU money.  Of course they want more work for less pay.   Like said above, sounds like you either suck it up and live with it or test the waters elsewhere.  The good thing about times like these is now you know where you stand with your employer so you can plan accordingly for future decisions.

use2betrix

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Re: What is going on with pay cuts due to COVID
« Reply #18 on: August 13, 2020, 07:15:10 PM »
Probably 70% of my coworkers in Oil & Gas had their pay dropped $150-$200/day..

LWYRUP

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Re: What is going on with pay cuts due to COVID
« Reply #19 on: August 13, 2020, 07:36:07 PM »
So I do have a contract. They changed it and pretty much said take it or leave it. Of course they said it's temporary,  but I never imagined 5 to 6 months. I would have happily cut my hours 30 percent,  but that's not what they want. They want the same amount of work for 30 percent less than they agreed on.  It's been frustrating,  I really don't know many people in this situation. Most had hours cut as opposed to such a huge salary cut but same hours.

Times like this are why it's so fun to have FU money.  Of course they want more work for less pay.   Like said above, sounds like you either suck it up and live with it or test the waters elsewhere.  The good thing about times like these is now you know where you stand with your employer so you can plan accordingly for future decisions.

Yep, if someone screwed me over like that, unilateral paycut despite a contract, I would leave.  They've shown you who they are and how they think they can treat you.  That's a life lesson.  Even if you need to stay with them for the money right now, file this away and remember it when times are good. 

Do you think they'll randomly drop a 30% unasked for bonus on you then?

Abe

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Re: What is going on with pay cuts due to COVID
« Reply #20 on: August 13, 2020, 11:08:34 PM »
Healthcare everywhere is taking a hit. Iíd wait until things settle down, then jump ship. Most aspects of healthcare have major shortages of qualified people, but now isnít a good time to find a new position. Who knows what will happen in the fall?

Ockhamist

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Re: What is going on with pay cuts due to COVID
« Reply #21 on: August 14, 2020, 07:49:30 PM »
So I do have a contract. They changed it and pretty much said take it or leave it. Of course they said it's temporary,  but I never imagined 5 to 6 months. I would have happily cut my hours 30 percent,  but that's not what they want. They want the same amount of work for 30 percent less than they agreed on.  It's been frustrating,  I really don't know many people in this situation. Most had hours cut as opposed to such a huge salary cut but same hours.

What's the point of a contract if it can just be changed...?

My grandfather always said that a contract is only as good as the man whose hand you shake when you sign it.

Gender assumptionís the only thing that ainít still true.