Southlake, TX asked in Employment Law for Arkansas

Q: After a company wide pay cut, can the company pay out previously accrued leave at the current, reduced rate of pay?

The nonprofit I work for issued 25% pay cuts to all employees due to financial distress. They plan on paying out previously accrued leave at the new, reduced rate of pay even though the leave was accrued prior to the pay cut at a higher rate.

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1 Lawyer Answer
Chris W. Burks
Chris W. Burks
  • North Little Rock, AR
  • Licensed in Arkansas

A: Thanks and it depends on the wording in the employee handbook or policy setting forth the leave. If the policy guarantees leave at a set rate and operates as a contract, then you may have a claim. Happy to speak anytime on this 501-891-6000.

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