Letter Informing an Employee That Pay Changes Are Rescinded
Author: Robert S. Teachout, XpertHR Legal Editor
When to Use
With the new overtime regulations suspended by a temporary injunction, it is critical for an employer to communicate with employees who are affected by the new overtime regulations while the final status of the new rule is under appeal.
An employer should use this letter if it has decided to reverse changes in pay or classification that it previously implemented, pending the outcome of the legal challenges.
It is important that an employer consult with qualified legal counsel before taking this action. Previous communications should be reviewed carefully to determine if they may have created a perception that the employer promised the pay raises or that overtime would be paid. If so, employees may sue on the basis that the employer's communications created a contractual obligation.