I've been in a job for 1.5 years. Job is ok. Colleagues are great. Management sucks. I'm thinking of retiring early in 6 months.

23 Comments

1. AnonymousMay 30,2024 at 4:59PM UTC

   You're being hoodwinked if you agree to this.

2. AnonymousMay 30,2024 at 6:43PM UTC

   Your job category? 1.5 years? Is payroll a part of or separate from HR?

3. AnonymousMay 31,2024 at 6:01PM UTC

   Payroll and HR are separate. I've since found out that the person I replaced 1.5 years ago (internal promotion) was never at the job category that they want to "fix" my position to be.

   Definitely lawyer-up time! Thank you for everybody's input and support!!

4. AnonymousMay 30,2024 at 7:00PM UTC

   I would contact your state's labor board. This sounds shady.

5. AnonymousMay 30,2024 at 7:28PM UTC

   They just want to reduce your pay. If it was truly a mistake they would have caught it way earlier.

6. Danica A.May 30,2024 at 9:19PM UTC

   The same thing happened with my sister. I would recommend checking any relevant law in your state because as far as I'm aware, they should note this 'mistake' within 3-6 months of being hired. Otherwise, it should not be an issue.

7. AnonymousMay 30,2024 at 7:52PM UTC

   This sounds like a tactic to get you to quit. A cut in your pay because of an administrative error? That's a THEM problem! I wonder if they're hoping you'll be so mad that you'll resign?

8. AnonymousMay 30,2024 at 11:18PM UTC

   Hire an attorney.

9. AnonymousMay 31,2024 at 12:33PM UTC

   A “mistake” that they didn’t notice for over a year?!?! That just sounds ridiculous. Do not agree to the pay cut. Get a lawyer, and start looking for a new job where you are appreciated. This whole situation seems shady! Good luck. And I’m sorry that you are dealing with this.

10. AnonymousMay 31,2024 at 1:19PM UTC

    I've been on the other side of this (account reconciliations). Sometimes it can take a year to review the books. Some companies just eat the mistake. Others don't. There are rules and timeframes for corrections. Companies may also have internal rationale for what they'll allow to slide and what they won't. Don't sign anything, yet. I'd suggest seeking advice from a lawyer- they'll let you know at the very least how much they'd charge and you can compare legal fees to this loss of salary.

    Other things to keep in mind. There are different laws in different states. It depends if this was a mistake or an "overpayment."

    I wouldn't necessarily jump to "this is shady." It is unlucky for you, especially if you were hired with an expectation of the salary being a certain compensation tier.

    Another thing to keep in mind. If you don't sign it and want to keep the money, which may very well be your right (after speaking with the lawyer). Could you then be terminated later (e.g. if you're in an at-will company/state). Could then that be considered "retaliation."

    Overall, glad you're asking questions. Get your ducks in a row. Even if you end up signing the form and get reduced pay for that job, it sounds like you'll likely want a new job. On the positive side, could you leverage this conversation to move internally (you'd know better based on the internal culture and politics)? E.g. Say you applied and are skilled for XYZ job. If they recategorize it to ABC, are there opportunities for you to move within the company to another XYZ job? You could ask. If it's a big enough company, perhaps just internally apply. I mention this because, when I worked for a large company, this sort of thing happened all the time. When they'd clean up compensation tiers, you'd sometimes see a shuffle of several employees just moving. Good management anticipates and manages this- to avoid mass disruption.

    Good luck!

11. Nadia Ibrahim-Taney, MS. MA. M.Ed.May 31,2024 at 2:30PM UTC

    If you can retire early, I would. You can always take work that appeals to you or fills in the gaps here and there, but you've only been at the company 1.5 years, definitely not long enough to feel any sense of obligation or loyalty.

12. AnonymousMay 31,2024 at 2:56PM UTC

    So, they made a mistake in your salary and now you get to do the same work for 4500 less a year? Unless it was an error of overpaying what you agreed to work for, I would not accept a decrease in salary.

13. AnonymousMay 31,2024 at 3:40PM UTC

    Lawyer up, this should be a claim through DOL wage claims division. Don't let them claw back or reduce your salary at all. If you don't get a positive outcome it is time to go.

14. Julie EMay 31,2024 at 5:50PM UTC

    I would not accept a pay cut for their mistake and I’m not buying it a year and a half later. Hire a lawyer and be prepared to retire early. This is NOT OK.

15. AnonymousMay 31,2024 at 5:55PM UTC

    Hmmm. I'm the OP of the "been at job for 1.5 years and payroll said they made an error and want to "fix it" by decreasing my salary by $4,500/year." I think reply above is for a different post. This OP is NOT 27 and is old enough to retire early. LOL

16. P I.May 31,2024 at 6:39PM UTC

    Seems odd. Financials are analyzed on a monthly, quarterly, and annual basis. I doubt that someone in finance would not have caught an error of this magnitude earlier. Do they want to retroactively correct the error, meaning go back and take money back from you? Or correct it on a go-forward basis?

17. Michelle LadyMay 31,2024 at 7:43PM UTC

    I would recommend you talk to your boss first. Assuming that payroll sent the information to you. $4500 is not that much (to the company) and I assume they do not want to lose a good employee over $4500 because it is a lot of money (to you).

    If it cannot be resolved, I would recommend seeking the advice of an attorney. If you chose to engage someone to represent you, the company will not look favorably on you moving forward.

    Good luck. I'm hoping your boss will help you.

18. AnonymousJune 3,2024 at 7:50PM UTC

    I was looking exactly for this comment. $4500 a year is nominal to an organization but has much more significant impacts to an individual.

    Find anything that you have in writing to confirm the amount you have been receiving. If you have been receiving more each payroll than what was stated in your offer letter - you definitely need to connect with a lawyer or DOL.

    If it was a mis-classification by someone in the system, they need to improve their own processes and auditing to ensure data accuracy. 1.5 years later is a long time for someone to just now notice. (still connect with a lawyer or DOL).

19. AlexisJune 1,2024 at 12:49PM UTC

    Do you have a job offer you signed?

    That is bad for morale, especially for $375 a month.

    They should not have done that- in my opinion, that's a red flag.

    I'd definitely start looking while you wait to see what else happens. I'd be mad as a hornet!

20. AnonymousJune 1,2024 at 1:18PM UTC

    I’m pretty sure this is illegal in many states. Speak with your state Dept of Labor and/or consult an employment/labor specialist attorney.

21. maria roseJune 1,2024 at 5:47PM UTC

    If this situation ( change in pay status that lowers your present salary) , you need to seriously consider your end goals in terms of remaining employed. to your desired FRA . I gather that you are already planning on retiring ( or stop working) by a certain unmentioned time. So I suggest you evaluate your finances situation to see if you can financially do without that $4500/ year for the time period left to reach FRA—I am assuming you are talking about 18-24 months maximum to more time. Remember that retiring early permanently affects your retirement income for the rest of your retirement life and your retirement income is not equal to your working life income. Choose wisely for your best interest. —Good luck

22. Sandy PochapinJune 1,2024 at 6:08PM UTC

    Have you talked to an attorney?

23. KathyJune 2,2024 at 4:06PM UTC

    What does your offer letter indicate for salary and benefits?

    Did you ask HR what would happen if you don't 'accept' the reduction in salary?

    Most companies in most states have carte blanche to do as they want including reducing salaries. Assuming you're are salaried and not unionized, employees have little power.

    Employment relationships are presumed to be “at-will” in all U.S. states except Montana. (https://www.ncsl.org/labor-and-employment/at-will-employment-overview)

    Speak to your manager to determine if the salary was approved at the time of hire?

    Speak to your manager to find out their opinion as to reduction in salary and if necessary file a complaint with the Department of Labor (assuming you actually are planning to retire).

    Good Luck!