Employer changed the Pay schedule on short notice

Carol from Upto · #1 05/14/11, 03:26 PM

My company is restructuring and there are a LOT of changes.
Almost weekly someone is let go, or leaves because they found another job.
Like rats leaving a sinking ship, maybe I should take warning.
I am one of a handful of hourly employees and we were given about 4 days notice that our pay schedule would change from twice monthly to weekly.
What this means to me is that the paycheck I was budgeting for on the 13th would have had 96 hrs on it. Instead i got paid for 72 hrs and going forward I will get my 40 hr a week check every Friday.
I will get another check on the 20th to make up the difference, but in that week I will be struggling.
A month notice would have helped tremendously in my budgeting.
I had scheduled bills to pay on the 15th and do not have enough money for them all.
I have no doubt that my employer will pay all wages due and I am confident they are within their rights.
I know I should be grateful that I still have a job, and I am very grateful indeed, but I am ticked off.
This is not discretionary income for me.
My discretionary income is all used. We have not had raises in three years, and as we all know, expenses keep going up.

I also know that there was a bigger reason for this change in the hourly pay schedule and the company doesn't want us to know much about the restructure,
because people could potentially lose their jobs. They feel the need to keep it secret that some people may lose their job due to the restrcucturing.
I have been laid off 3 times before but always had several months notice
which helped a lot in getting a new job.
In th past, I was given notice that the job would be ending and I was willing to give a fair days work for a fair days pay in the meantime. But the meantime gave me the freedom to look for another job, openly.
I think the companies reduced their unemployment costs in this way, by giving their employees time to find new jobs.
Thanks for listening!
On the plus side of my life, my fiance is taking me out to dinner tonite!

Energy Rebel · #2 05/14/11, 04:03 PM

Sorry to hear that.
Been there, done that, got the T-shirt.
Welcome to the brave, new, world.
Don't worry, when a door shuts, a window opens.
Keep your eyes open for opportunity.

roachhill · #3 05/14/11, 04:57 PM

I had a worse surprise. The bus company only pays me once a month on the 19th and I was counting on getting all the bills paid for the month but one of the other drivers told me they don't pay in May. They pay in June then don't bother to pay again until Sept. I guess I'm going to be looking for a new job because that's just ridiculous.

longshadowfarms · #4 05/14/11, 05:32 PM

Been there, done that too. Noooooooooo fun! That was actually the state of NY! I can't remember exactly how much they took for how long at this point but our budget was so tight at that point that it HURT! It was supposed to be so that the pay would be delayed longer? Like you'd be getting it 6 weeks later instead of 4. Point being, I feel your pain. So much of this sort of thing going around. I swear they just want more people to quit so they don't have to pay unemployment.

bluemoonluck · #5 05/14/11, 05:38 PM

Mine did that in March, too..... they changed our monthly pay date from the 1st to the 5th. Doesn't seem like such a big deal, but ALL my auto pays are taken out on the 2nd of the month - mortgage, student loan, etc. Its amazing what even a few days difference in a payday can do to a person's budgeting!!

Ann-NWIowa · #6 05/14/11, 06:44 PM

This is exactly why I do not do any auto pays except for BC/BS. I see clients get caught short all the time and have overdrafts because of auto pays. I may be a control freak, but I don't want anyone having access to my checking account except me. If my pay is late then checks will be mailed late and no overdrafts.

Carol from Upto · #7 05/14/11, 07:38 PM

Ann in NW Iowa, you sound so accepting "If my pay is late"
Why should your pay be late??

Yvonne's hubby · #8 05/14/11, 07:49 PM

What I find interesting is that a week, or even a full month in delaying a paycheck can be so devastating to someones budget. Why do so many live on "the edge"? Why not scale back, set aside cash for a minimum of six months to a years living expenses?

Melissa · #9 05/14/11, 07:55 PM

Some people are now using the money they had set aside for emergencies!

tlrnnp67 · #10 05/14/11, 08:19 PM

That is odd that the company would do that. They actually increased their payroll costs by increasing to weekly pay!

willow_girl · #11 05/14/11, 08:30 PM

Start networking and shopping your resume around now!

longshadowfarms · #12 05/14/11, 09:25 PM

Quote:

Originally Posted by Yvonne's hubby

What I find interesting is that a week, or even a full month in delaying a paycheck can be so devastating to someones budget. Why do so many live on "the edge"? Why not scale back, set aside cash for a minimum of six months to a years living expenses?

When it happened to us we were recently married and his job had put us in a high rent area for that first year. Would have liked to have had some set aside but it got eaten up with expensive, tiny housing. Not everyone CHOOSES to live on the edge so to speak.

plowjockey · #13 05/14/11, 09:49 PM

Quote:

Originally Posted by Yvonne's hubby

What I find interesting is that a week, or even a full month in delaying a paycheck can be so devastating to someones budget. Why do so many live on "the edge"? Why not scale back, set aside cash for a minimum of six months to a years living expenses?

You might find it interesting, but many it is reality and they may have already scaled back.

Our income taxes went up $2k this past year(no major reasons) we spend $150 week on gas( little extra travel) and our "share" of a recent emergency room visit was $900. We recently paid nearly $500 for the most "inexpensive" set of car tires, we could find.

Last week we paid nearly $50 for tickets, for the family to attend DS's high school musical. Next week we will spend aoubt the same to attend their HS Choir performances.

The truely sad thing is that financially, we are better off than many.

Wendy · #14 05/15/11, 12:35 AM

Quote:

What I find interesting is that a week, or even a full month in delaying a paycheck can be so devastating to someones budget. Why do so many live on "the edge"? Why not scale back, set aside cash for a minimum of six months to a years living expenses?

We have scaled back until we can no longer scale back. When someone's hours are cut, they lose their insurance, have their vacation taken away, & haven't had a raise in 3 years, it's kind of hard to save for a rainy day. Everything has been going up except our income. I have taken 2 part-time jobs to try to fill in the gap, but it still is not enough to save anything substantial.

where I want to · #15 05/15/11, 12:43 AM

Not respectful of your employer and rather odd too.
I hope things settle down for you soon.

Yvonne's hubby · #16 05/15/11, 01:20 AM

Quote:

Originally Posted by plowjockey

You might find it interesting, but many it is reality and they may have already scaled back.

Our income taxes went up $2k this past year(no major reasons) we spend $150 week on gas( little extra travel) and our "share" of a recent emergency room visit was $900. We recently paid nearly $500 for the most "inexpensive" set of car tires, we could find.

Last week we paid nearly $50 for tickets, for the family to attend DS's high school musical. Next week we will spend aoubt the same to attend their HS Choir performances.

The truely sad thing is that financially, we are better off than many.

I am thinking several here have missed my point. Things are tough for lots of folks in todays economy, but it would not be nearly as tough if they had prepared better while they had the job, saved more, spent less and lived a bit cheaper than they could afford. I am not picking at anyone, just sayin... I see people all the time living on the edge.... people with good paying jobs, and they still dont have a dime left 2 days after payday. My thoughts were why not live a little cheaper, cut back on those expenses until they have a good nestegg laid by, then if they have a few extra bucks go ahead and live a little better but dont ever let themselves get in the position that a week, or a months paycheck is going to make or break themselves.

Ann-NWIowa · #17 05/15/11, 02:23 AM

Thru the years we've had employers change pay from weekly to bi-monthly and vice versa. Usually they gave a month's notice of the change.

Now days a lot of employers are struggling to keep their businesses going so employees don't always get a "fair" shake. I had a client tell me that his employer had reduced everyone's hours in order not to lay anyone off plus hadn't taken any income from the business for over a year.

Living paycheck to paycheck is a dangerous situation when you don't have an emergency fund. Extremely stressful because simple things like a change in pay periods can put you over the edge.

Jan Doling · #18 05/15/11, 03:07 AM

Our firm reconstructed into 2 firms and I am in the one with less than 40 in it so they don't have to follow the same rules as the larger firm. Plus they are very secretive about everything and if you dare to ask they glare at you. Scary stuff. I live paycheck to paycheck as I am a single mother and my income is the only income. I spend a lot on gas by living in the middle of nowhere, but it has saved my sanity being out in the woods. As we near retirement age, fewer will hire us baby boomers. I was actually hoping the rumors that the Rapture will happen May 21 are true!

homefire2007 · #19 05/15/11, 10:33 AM

This happened to me recently. We went from being paid weekly to every other week. I am a single mom and the sole support of my family (just one left at home ) I can't tell you how much an emergency fund helped me mentally. This job will be ending soon, as they are closing the store. But knowing I have a little tucked away gives me some breathing room. Jobs are scarce in this very rural area but you can string many part-time gigs together. Good luck and hang in there!

Wolf Flower · #20 05/15/11, 11:20 AM

Quote:

Originally Posted by Yvonne's hubby

My thoughts were why not live a little cheaper, cut back on those expenses until they have a good nestegg laid by, then if they have a few extra bucks go ahead and live a little better but dont ever let themselves get in the position that a week, or a months paycheck is going to make or break themselves.

Some of us do exactly that, and then are faced with a sudden catastrophe that wipes it all out... like I did when my business burned down in a fire. You simply can't assume that people who are "living on the edge" have been somehow irresponsible with their money. Some of us have been very responsible with our finances, and yet life can have a way of mugging you at gunpoint.