By February 2024, the worker earned $117,300 annually plus benefits. The chief executive officer requested a temporary 20% reduction in hours and pay.
The worker signed an Agreement for Reduced Hours reducing his salary to $93,840 annually because he feared refusing would result in termination.
The employer’s challenges deepened, and beginning April 1, 2024, the company implemented company-wide workweek reductions.
Out of 19 employees, six were placed on full temporary layoff, while ten others received partial layoffs. The worker was placed on temporary layoff for six months, receiving no income though benefits continued.
Temporary layoff provisions trigger dispute
The worker started legal proceedings in July 2024, seeking dismissal declaration and damages. On September 6, 2024, the employer recalled the worker with salary restored to $117,300.