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Employee refusing a raise
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Employee refusing a raise
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
A question appeared in your legal forum in February, but I could not access the responses. It involved an employee refusing to accept pay raises. If we have an employee who says she does not want a ra
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Forums » Topic Forums » Legal Forum » Employee refusing a raise
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Employee refusing a raise
posted at 6/21/1999 1:53 AM EDT
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Posts: 1
First: 6/21/1999 Last: 6/21/1999 |
A question appeared in your legal forum in February, but I could not access the responses. It involved an employee refusing to accept pay raises. If we have an employee who says she does not want a raise, do we have any legal liability if we go ahead and give her a raise anyway?
Thanks, Susan Chaffin chaffins@marykay.com |
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Employee refusing a raise
posted at 6/21/1999 7:13 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
I cannot imagine there is any legal liability for paying an employee more than he or she wants to be paid. Think of the lawsuit --
Judge: You claim what? Employee: They illegally and improperly paid me more than I was worth. As a result of this wrongful conduct, I felt humiliated and depressed. I had enhanced self-esteem and I have not been able to sleep since. Judge: Get the heck out of this courtroom! Perhaps I am missing something, but the employee could always decide to give the extra money to charity, or his or her underpaid co-workers, or back to you (or to me!). If the pay raise was so intolerable, the employee could always quit -- now that would be a first. Am I missing something here? |
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Employee refusing a raise
posted at 6/21/1999 11:27 PM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
I've had employees refuse raises before; as long as you are not paying an employee under the minimum, and/or not being "creative" with your pay plans, it's not a problem nor is it an unusual request.
Many people, either on assistance or Social Security, cannot earn over a certain limit -- they appreciate the workplace as a social outlet, and depend on it to fill the day. Forcing them to take a raise can be detrimental to benefits, subsidized housing, and other programs which may force them to quit or cut down hours - they lose their benefit and you lose a valuable employee in trying to force them to take what you feel is good for them. I've had other employees who refuses for religious reasons, only taking what we had to pay them. Without prying as to why, verify that they don't want it, document it if you feel it's a problem, and leave it at that. Your policy should reflect a periodic performance appraisal which doesn't necessarily guarantee a raise; continue to monitor their performance, have them sign the review along with the amount, albeit not changed. Unless you have a CBA, where the raise is mandated either by amount or percent and the employee cannot individually refuse, it's wise to honor the employee's request, IMHO. |
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Employee refusing a raise
posted at 6/22/1999 12:18 AM EDT
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Posts: 38
First: 6/22/1999 Last: 11/3/2009 |
I have run into this situation twice in dealing with personnel issues. Both involved older staff members who had limitations placed on income by pension or Social Security restrictions. In both cases, we honored their wishes. No problems evolved in either case - one dating from 1988 and the other from 1997-1999. For the more recent instance, approval was given after consulting with our legal advisor and getting a signed statement from the ee. |
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Employee refusing a raise
posted at 6/24/1999 12:34 AM EDT
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Posts: 48
First: 6/11/1999 Last: 4/13/2001 |
I have seen this twice. I only know the reason in one case: the 'ee felt he was adequately paid, and felt that if he passed on his raise it would help someone else, preferably a lower paid person, get a better raise. In both cases we documented the declining of the raise and had the 'ee sign it. Curious, but we've had no problems with it. |
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