pay cut...

[Boy4]

Just received notice that the company I work for will implement a temporary 20% pay cut. Should I consider myself lucky? I don’t want to feel ungrateful as I know there are other who’s jobs were pulled from under them..... but fuck.

[+ RJD]

15% here.....it sucks, especially since monetarily it’s my car lease payment, but given what so many people are dealing with, I’m not going to complain. The alternative was to cut people to save 15%. I’ll deal with the reduced salary if it helps save jobs.

[+ tassojunior]

PPP companies?

[+ Keith30309]

It depends on your outlook on life Are the shareholders taking at least a big of a hit ? All exec pay (including the tricky stuff like hours on a private jet and paid car) and bonus ?

[+ keroscenefire]

Sorry to hear about your paycuts gentlemen. Hopefully it won't last long. We just got word that we will have to do unpaid furlough days next year...one a month. Not sure exactly what that means in percent less pay, but I think it's a couple percentages off. Annoyingly, they are mostly just taking formerly paid holidays and turning them into unpaid furlough days so I don't really get many more days off work. But I understand why they need to do this and am grateful that I still have a job as well.

[Guest]

guys, sorry for the cuts. I don’t think many corners of the work force will go untouched. It’s my sense that folks at the bottom are getting help (and possibly benefitting from increased benefits), folks at the top don’t need help, but the middle is getting the pinch with no assistance offered.

[+ RJD]

It depends on your outlook on life Are the shareholders taking at least a big of a hit ? All exec pay (including the tricky stuff like hours on a private jet and paid car) and bonus ?

 

For my place, everyone top to almost bottom. They divided everyone into three groups. Anyone below a defined salary didn’t get cut. The middle range got a 10% cut, the upper range (including execs) got a 15% cut. There is no travel, no expensing food, beverage, or entertainment (not that there’s any to be had), and open positions were frozen.

[instudiocity]

Sorry to hear about your paycuts gentlemen. Hopefully it won't last long. We just got word that we will have to do unpaid furlough days next year...one a month. Not sure exactly what that means in percent less pay, but I think it's a couple percentages off. Annoyingly, they are mostly just taking formerly paid holidays and turning them into unpaid furlough days so I don't really get many more days off work. But I understand why they need to do this and am grateful that I still have a job as well.

40 hours x 52 weeks = 2080 hours

8 hours/mo x 12 months = 96 hours

96 hours divided by 2080 hours = 4.6% drop in “pay” but you have 12 days off, too.

 

Rough estimate but illustrative… Count your blessings.

[alrajee]

I've been working 4 days out of 5 since the US started issuing stay-at-home orders. I just think of the reduction in hours as the money I otherwise would have spent eating lunch and commuting to the office.

 

One good thing about it is that I get three-day weekends now (I always take Friday off) even though there's not much I get to do at home.

 

I'm not going to lie...I kind of like it.

[+ PapaTony]

I think people at the bottom will suffer significantly because unemployment insurance is measly and limited, even with the booster.

 

of the money that was appropriated by Congress 83% is going to 43,000 individuals earning OVER $1,000,000

[+ PapaTony]

California allows UI claims for partial loss of income due to corona virus

[Guest]

 

of the money that was appropriated by Congress 83% is going to 43,000 individuals earning OVER $1,000,000

 

I said earlier that the CARES Act was turning in to a gold rush...but this comment jumps out. Do you have a reference that supports it?

 

edited to add: I searched. You might want to check snopes. This is a reference to raising deductions of pass through losses against other taxable income...not an appropriate of funds. I didn’t know the limit was raised in the Cares Act. It affects my situation. Contrary to your assertion, in my case, it might reduce my tax by 1%. However, the concept that allows losses in one taxable entity to offset income in another is not unjust.

Edited April 28, 2020 by BnaC

[jjkrkwood]

If it were me, I would still feel lucky and grateful to HAVE a job during these unprecedented times. "Don't bite the hand that feeds you".... Wait until the RIGHT time to BITE it, on YOUR terms ! For now, go with the flow. Still having 80% buys a lot of toilet paper

[+ Pensant]

now that it’s regressing to an employer’s market, the fear is that these cuts might be permanent. I’ve heard from former employees that the company that acquired mine has stopped paying employees’ internet and cell phone expenses, even though they’re required to work from home, which also is a pay cut. Again, they’re pleased to still be working. So glad I retired early.

[+ Charlie]

now that it’s regressing to an employer’s market, the fear is that these cuts might be permanent. I’ve heard from former employees that the company that acquired mine has stopped paying employees’ internet and cell phone expenses, even though they’re required to work from home, which also is a pay cut. Again, they’re pleased to still be working. So glad I retired early.

In 1998, I began working for a company that had started out with everyone working in an office filled with computers, but had then allowed workers who wanted to work remotely from home to do so. The ones who worked at home were expected to be grateful and pay their own expenses for doing so: computer set-up, cable fees, phone lines, etc. Although the company never said anything, they obviously soon realized that the company was saving money that way, and in 2002 they put everything online and shut down the office. They never said anything about subsidizing the worker's costs, so it really was an unacknowledged pay cut. I think we may see a lot of that sort of thing from companies when the pandemic is over.

Edited April 28, 2020 by Charlie

[+ tassojunior]

Much, if not most, of the money is going to franchisees which eventually benefits the parent company. McDonalds, Hilton, etc.

 

Also publicly-traded corporations can issue stock to get money, they don't need a public bailout usually now.

 

How places like Shake Shake, the LA Lakers etc qualify is a mystery since they clearly have more than 500 employees.

[+ RJD]

I think we may see a lot of that sort of thing from companies when the pandemic is over.

 

I’ve been saying this since this whole thing started and working from home became the norm for everyone who could. Companies, even “old-school” companies, who are resistant to this idea, are going to realize the cost effectiveness of not maintaining large office spaces and the required upkeep of supplies, maintenance, etc. I have a company issued laptop but use my own monitors, printer/scanner, keyboard, mouse, and docking station. If I need to print anything I’m using my paper and ink. Calls are being made on my personal cell. Assuming they don’t see a decline in efficiency and quality, they’d be foolish to not seriously consider it, especially since everyone will be in cost reduction mode.

 

As a separate but related issue, I’m interested to see how employers will modify, if at all, their requirements of limiting paid-time-off carryover days into the next calendar year given the lockdown and everyone’s inability to travel and take vacations.

[+ Pensant]

Time to short REITs that have commercial office building portfolios?

[KinkyNEguy]

As a separate but related issue, I’m interested to see how employers will modify, if at all, their requirements of limiting paid-time-off carryover days into the next calendar year given the lockdown and everyone’s inability to travel and take vacations.

 

I suspect we will see more white and gray collar organizations move toward unlimited PTO. Which, in practice, is not really as great as it sounds for the employee, while it does remove that ongoing and often growing liability from the company accounts.

[+ RJD]

I suspect we will see more white and gray collar organizations move toward unlimited PTO. Which, in practice, is not really as great as it sounds for the employee, while it does remove that ongoing and often growing liability from the company accounts.

 

It would be a nice gesture if employers offered to “buy back” unused/unusable vacation days, but given that companies are in cost-cutting mode and as @Pensant said, it’s quickly becoming an employer’s market, I doubt it will even be considered.

[+ keroscenefire]

40 hours x 52 weeks = 2080 hours

8 hours/mo x 12 months = 96 hours

96 hours divided by 2080 hours = 4.6% drop in “pay” but you have 12 days off, too.

 

Rough estimate but illustrative… Count your blessings.

Thanks...I was thinking it was something around that. This is why I don't teach math..haha. Hopefully things stay well with you.

[MikeBiDude]

Much, if not most, of the money is going to franchisees which eventually benefits the parent company. McDonalds, Hilton, etc.

 

Also publicly-traded corporations can issue stock to get money, they don't need a public bailout usually now.

 

How places like Shake Shake, the LA Lakers etc qualify is a mystery since they clearly have more than 500 employees.

See #24 in the SBA FAQ here....lots of additional information as well.

[+ tassojunior]

See #24 in the SBA FAQ here....lots of additional information as well.

wow. Right after 23 dealing with franchises, 24 extends PPP to many company-owned locations too....

Answer: Under the CARES Act, any single business entity that is assigned a NAICS code beginning with 72 (including hotels and restaurants) and that employs not more than 500 employees per physical location is eligible to receive a PPP loan.

[instudiocity]

I think people at the bottom will suffer significantly because unemployment insurance is measly and limited, even with the booster.

 

of the money that was appropriated by Congress 83% is going to 43,000 individuals earning OVER $1,000,000

I dunno, who here wouldn’t enjoy a $2,400/month boost?

[Guest]

Time to short REITs that have commercial office building portfolios?

Interesting thought, but I bought a commercial mortgage REIT recently. 14% yield and I’ve seen 30% appreciation in a month.

 

Don’t sell office short. Prime properties have long term tenant leases in place...not easy to terminate. In addition, everyone I know can’t wait to get out of the home office and back to the business office. Now retail REITs might be a different story...