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Laid off employee offers to take pay cut: How should manager respond?

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May 8, 2009
1 minute read
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These days, some applicants and potentially downsized employees will turn to desperate measures to get or keep a job. And that opens up brand new legal challenges for employers.
In one recent case, a 63-year-old man worked as the CFO for a struggling retail business. When the company needed to cut costs, he was told he was being laid off.
Trying to save his job, he offered to take a 30% pay cut instead. The company refused, and he was terminated. CFO duties were taken over by another employee, who performed that work in addition to the duties of his prior position.
The problem: The employee’s replacement was about 40 years younger and made significantly more than what the employee offered to work for.
Also, he claimed his boss made comments about his age while he was trying to negotiate. He sued, claiming he was laid off because of his age.
The company tried to have the case thrown out, but the court let it move forward. The employer was apparently unwilling to negotiate with the employee, even though his proposal could have saved them a lot of money.
That fact, combined with the boss’s alleged age-based remarks, made it reasonable to believe his age played a role in the decision. The case was sent to a jury for trial.
Cite: Carras v. MGS 728 Lex, Inc.

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