QUESTION
If i have a current 3 year employee agreement at X salary. Can I be forced to sign a new employee agreement to take a temporary reduction in pay?
Asked on Mar 19th, 2020 on Contracts - New Jersey
More details to this question:
In the hospitality industry which is getting hit hard by coronavirus. I am a high level employee that is very instrumental to the hotels. Was told that to get a 20% reduction in pay that I will have to sign a new 3 year employee agreement, i just signed a new one in January for 3 years that has a non-compete specific to working in New York City. I was told the if i do not sign this new agreement that i will get furloughed but I also have a 3 month severance pay in current employee agreement. I would like to keep my current EA intact but happy to sign something that says i will take a temporary reduction in salary until "X" date. Is it legal to threaten furlough if I don't sign a new EA? Also what are my best options here?
1 ANSWER
Mergers, Acquisitions and Divestitures Attorney serving New York, NY
Partner at
Russo Law LLC
2 Awards
The answer depends upon many things one of which is what legislators will do in response to the virus. But from a contractual persective, you can always negotiate a contract. If you sign that new contract, your rights under the previous one would likely be extinguished so be careful to read it carefully before executing. You should consider having an attorney review the former agreement and the new contract so you can have a full understanding of what you are agreeing to and you associated rights under the governing law.
Best,
Lou Russo
www.russolaw-llc.com
lrusso@russolaw-llc.com
919-262-1101
Answered on Mar 20th, 2020 at 7:15 AM
Lou Russo RUSSO LAW LLC info@russolaw-llc.com 929-292-1101 www.russolaw-llc.com