Business

Can I Be Forced To Take a Pay Cut During COVID-19?

If you’ve been impacted, you might be wondering, “can I be forced to take a pay cut?” Read on to learn about your options.

Published

3 years ago

March 30, 2021

Vishnu Chaudhary

Can I Be Forced To Take a Pay Cut During COVID-19?

It’s no secret that COVID-19 has radically changed the way that the world operates. We’ve traded busy parks and cafes for Zoom meetings in our living rooms. Some businesses have experienced a major boom thanks to COVID-19, but other, more traditional businesses have seen a sharp decline in profits, and many have shut their doors permanently.

In an attempt to keep their doors open, many businesses have turned to pay cuts and layoffs to save money. If you’ve been impacted, you might be wondering, “can I be forced to take a pay cut?” Read on to learn about your options.

How COVID-19 Changed the Economic Landscape

COVID-19 has fundamentally changed the world in a lot of ways. It shouldn’t be a surprise that it has turned the world economy on its head.

Businesses that were thriving before COVID-19 became a household name have had to shut down or drastically change the way they do business. The hardest-hit has been businesses that rely on customers coming through their doors and making purchases, namely retail stores and restaurants.

Even institutions of higher education have felt the economic impact of COVID-19. Students that once filled residence halls and classrooms are now forced to attend classes from their parents’ home.

Cost Saving Measures Businesses Are Taking

Businesses have many ways that they can cut costs to stay afloat. They might slow down production, but they’re more likely to make cuts to the workforce. The following measures are common strategies they employ to save on overhead.

Furloughs

Furloughs are put into place when an employer is experiencing a rough patch, but they don’t want to lose all of their employees. Instead, furloughs act as a temporary form of layoff until the business is in a better place, financially.

Furloughs can operate in a number of different ways. Some employers spread out their furloughs throughout the year. This means an employee will have to take one or more unpaid days per month, but they won’t have to lose out on a lot of pay all at once.

Employers who are in a particularly tight spot can furlough employees all at one time. Regardless of how your employer operates their furlough, they have an end date, and you are expected to return to your old salary once the furloughs end.

Hour Cuts

Another cost-saving measure employers put into place to save money is cutting the hours each employee works. This means that employees who were once full-time might start working part-time instead. This can also impact your eligibility to receive benefits through your employer like health insurance.

Pay Cuts

If an employer wants to maintain the full-time status or their workforce, they might choose to cut their pay instead. This helps employees retain their benefits while also saving money on pay.

Layoffs

If your employer is in a pinch, it may be necessary for them to lay off some employees. They may or may not offer severance packages for employees they lay off. They may also provide incentive packages for employees who are near retirement to retire early.

Can I Be Forced to Take a Pay Cut?

The answer to this question is not cut and dry. It boils down to whether you are an exempt employee or a non-exempt employee. If you aren’t sure which category you fall under, then think of it as salaried versus hourly pay.

Exempt Employees

Exempt employees are employees who receive a salary for their work and therefore are exempt from receiving overtime pay.

Employers can cut the salary of exempt employees so long as they do not cut their pay to less than $684 per week. If they cut the salary below that level, then your employer must pay you overtime for the work you put in over 40 hours per week.

Non-Exempt Employees

If you are a non-exempt employee, then your employer is legally permitted to cut your hourly wage or cut your hours. Keep in mind that your employer cannot cut your wages below the federal minimum wage, $7.25 an hour.

If your hours are cut, but you work overtime, you are still entitled to time and a half. If your employer cuts your hours but the demands of the job force you to work more hours, then your employer must pay you for the time you worked.

Your Options

Long story, short, yes, it is possible for your employer to employ cost-saving measures such as pay cuts in order to keep their doors open. If you want to continue working for your employer, then you will have to acquiesce to their demands.

That said, you don’t have to stay with your employer if you feel like they’re taking advantage of you and the pandemic economy in order to maximize profits. The job market isn’t necessarily strong right now, but you should always weigh your options when you get hit with pay cuts or furloughs.

You can do this in one of two ways. You can stick it out in your current position until you find a new job, or you can quit altogether and start looking for a new job full-time. The latter option should only be pursued if you have enough money to stay afloat for several months without a job.

If your personal savings isn’t ready for the big hit that comes with unemployment or pursuing other job options, then you should read more now about how to become more solvent.

Are You Worried About Your Financial Future?

If you’ve found yourself wondering, “can I be forced to take a pay cut?” you should know that you’re not alone. A lot of people are trying to navigate their financial and career options in today’s COVID economy. If you’re worried that your employer is violating labor laws, then you should contact the US Department of Labor.

Do you want to stay on top of the latest news about COVID-19 and the job market? You’re in the right place! Check out the rest of our blog for everything you need to know to be well informed.

Business

Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

Published

4 hours ago

April 19, 2024

Manoj Nair

Lawsuit Claims Cinemark Shortchanged Customers on Sold Beverages

A North Texas movie-goer has filed a lawsuit over Plano-based Cinemark drink sizes.

The lawsuit alleges that the movie theater chain fleeced its customers by shorting beverages sold in the chain’s canteens.

The chain loudly advertised that the 24-ounce container is a better deal, claiming consumers will get more for less price, while the reality is that Cinemark swindles customers by shortchanging them on sales for the 24-ounce beverage cup.

Cinemark Accused of Shortchanging Customers on Beverage Sales

The proposed class action lawsuit has been filed in a Texas federal court and it indicts the movie.

The lawsuit further details how consumers got only 22 ounces of liquid, which is the maximum that can be filled in Cinemark’s 24-ounce cups.

It is alleged that the deception was part of a deliberate packaging and pricing practice.

Also Read: California mother files lawsuit against Tesla after her 2-year-old child starts Model X and runs over her

Theaters pay almost 50% of the revenue generated by ticket sales to the studios but keep all the profits generated by the sales of food and beverage.

Increased competition has pushed the chain to offer concessions and bonuses, and this helped Cinemark in 2023 to record its highest concession sales of all time.

However, the lawsuit alleges that Cinemark dupes its customers by shortchanging them on sales for the 24-ounce beverage cup instead of the 20-ounce beverage cup.

The reality is that consumers pay less for a 20-ounce cup, which is also a better deal than buying a 24-ounce beverage cup.

The complaint stated,

“The size of the container in relation to the actual volume of the product contained in it was intended to mislead the consumer into believing the consumer was getting more of the product than what was in the container by a twelfth.”

The lawsuit was brought by Texas resident Shane Waldrop, who purchased a 24-ounce beverage cup in February which cost him $8.80 before tax.

However, on closer look, he realized that the cup was not large enough to hold 24 ounces. This was confirmed later when Shane took the cup home and found that it could contain only 22 ounces of liquid.

Thus, the consumer was duped 2 ounces for every cup he bought.

The lawsuit charged the movie theater chain with neglectful falsification, deception, unjust profiteering, and a violation of Texas’ Deceptive Trade Practices Act and asked for a court order to halt such practices.

Waldrop is seeking compensatory damages and also demanded a jury trial over the claims.

Also Read: Johnson Controls subsidiary Tyco Fire Products to pay $750 mn to settle ‘forever chemicals’ lawsuit

Business

Mukesh Ambani’s 67th Birthday: How He Built The Reliance Industries

Published

4 hours ago

April 19, 2024

Manoj Nair

It is Mukesh Ambani’s 67th birthday, and today we will try to get to know about the incredible journey of this man who, with sheer determination and grit, has created one of the biggest conglomerates in the world.

Reliance Industries, which passed into his hands in the 2000s, grew at a pace which was phenomenal.

Born on April 19 to Dhirubhai Ambani and Kokilaben in Aden, Yemen, where his father was based before moving back to India.

Reliance Industries was already a big company, but its growth after Mukesh Ambani took on the reins was phenomenal.

With astute business acumen and strategic vision, Ambani has propelled Reliance Industries to dizzying heights, making it one of India’s most powerful empires.

It was under his stewardship that Reliance Industries diversified from being a petroleum company to enter other fields like Telecommunication and the Aerospace industry.

The 5G revolution, which has swept the country, is largely due to the efforts of Mukesh Ambani and his company Jio. Jio offered high-speed and cheap internet services to the farthest corners of the company, and this helped it to capture a major chunk of the telecommunication sector. Today the nation’s population is using internet data in an unprecedented way.

Another diversification move was the entry of Reliance Industries into retail, energy, petrochemicals, and media. Reliance also acquired and invested in Future Group’s retail assets, as well as the creation of JioMart, an e-commerce venture.

Reliance also entered into a partnership with the Indian media company Viacom18 and the American entertainment giant Disney to create a joint venture, valued at $8.5 billion. The venture also gave exclusive rights to Reliance to distribute Disney productions in India.

It is his futuristic vision which catalyzed Reliance Industries to invest heavily in the renewable energy sector. The company has built solar and wind energy farms and is contributing in a big way to help India achieve its renewable energy targets while lowering carbon emissions and environmental impact.

Again, it is his futuristic views which made him create the Jio Institute, which is a truly world-class educational institution dedicated to cutting-edge research and technical improvement. The stated motto of the institute is to help develop future leaders and innovators who will help the country grow to become a developed nation in the coming decades.

The phenomenal growth and success of Reliance Industry can be attributed to Mukesh’s keen sense to anticipate market trends, evolve as per changing consumer preferences, seize emerging possibilities, and produce products and services of the highest quality.

As of April 19, 2024, according to Forbes, Mukesh Ambani’s net worth is to the tune of $115.8 billion, and he is ranked one of the top 10 wealthiest people in the world on Forbes magazine’s annual list of billionaires in 2021, 2022, and 2023.

Net Worth

Pavel Durov Net Worth 2024: How Much is the Russian-born Emirati Entrepreneur Worth?

Published

1 day ago

April 18, 2024

Vishnu Chaudhary

Pavel Durov Net Worth 2024: How Much is the Russian-born Emirati Entrepreneur Worth?

Who is Pavel Durov?

Pavel Valeryevich Durov, born on October 10, 1984, is a Russian entrepreneur renowned for founding the social networking site VK and the Telegram Messenger. He is the younger sibling of Nikolai Durov. After stepping down as CEO of VK in 2014, Pavel, along with his brother, led a nomadic lifestyle in self-imposed exile, holding citizenship from Saint Kitts and Nevis. He is recognized for his contributions to the tech industry and his advocacy for user privacy.

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Pavel Durov Career?

Durov’s journey in the tech industry began in 2006 when he co-founded VKontakte (VK), inspired by Facebook’s success. Under his leadership, VK flourished, reaching a valuation of $3 billion. However, conflicts with Russian authorities over user data led to his departure from VK in 2014. Subsequently, he focused on Telegram, emphasizing privacy and security, earning him acclaim as a tech visionary.

Pavel Durov’s Net Worth

As of 2024, Pavel Durov’s net worth is estimated to be an impressive $17 billion. His wealth stems from his pioneering work with Telegram and VK, propelling him into the upper echelons of the tech industry. Durov’s success serves as an inspiration for aspiring entrepreneurs worldwide.

Pavel Durov Age?

Pavel Durov, born on October 10, 1984, is currently 39 years old. Despite his relatively young age, he has achieved remarkable success in the tech world, demonstrating his entrepreneurial prowess and innovative thinking.

Pavel Durov Family: Parents

Pavel Durov’s father, Valery Semenovich Durov, is a distinguished academic with a Doctorate in Philological Sciences. His grandfather, Semyon Petrovich Tulyakov, was a decorated World War II veteran. Durov’s family background reflects a tradition of intellectual and academic excellence.

Pavel Durov Height and Weight

As of 2024, Pavel Durov stands at 5 feet 10 inches (178 cm) tall and weighs approximately 163 pounds (74 kg). His physique, along with his intellect and entrepreneurial acumen, contributes to his charismatic presence and success in the business world.

Also Read: Nasser Al-Khelaifi Net Worth 2024: How Much is the President of Paris Saint-Germain Worth?