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A Cut In Pay

June 2, 2022

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Now that the pandemic is supposedly over, more and more companies are demanding an end to work-from-home and hybrid work setups. I read an article in Fortune where a law firm in the United Kingdom told their lawyers that they could continue to work from home two or three days a week or even 100%. Nothing unusual nowadays, right? Well get this! The lawyers will have to take a 20% cut in pay to take advantage of the offer.

The company’s justification for the pay cut is that employees are saving money on not having to commute to the office.

The price of gas today is between $5 and $7 a gallon depending on where in the United States you live. The commute to work for me is 7 miles round trip. Not a lot since I live very close to my company office. I agree that those who must commute 30 miles a day, for instance are saving money on gas.

But what about the cost of utilities, office supplies, internet access, and equipment like printers and ink?


Real Savings for Employees?

There are some states in the US, like California, DC, Illinois, Iowa, Montana, New York, and Massachusetts that require employers to compensate employees for certain business expenses, but the mandates vary per state. Others states like where I live in Tennessee, there are no such requirements. So technically, the amount of savings for me in commuting costs is being offset by what I am paying to run an office out of my home.

As a Hybrid Boomer going into the office only periodically or in some cases two to 3 days a week as an option would still not warrant a cut in pay. After all, companies are saving money too – in toilet paper, office buildings, utilities, coffee, etc., right?

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