What’s Legal in Pandemic Pay Cuts Isn’t Necessarily Fair

Businesses looking to share the pain of the economic hardship caused by the coronavirus pandemic are cutting workers’ salaries instead of turning to layoffs or furloughs. Attorneys are advising companies to cut cleanly across the board, slicing an equal percentage based on department or team or some other neutral criteria, so they aren’t hit with a discrimination lawsuit.

No Exceptions: Employers shouldn’t make individual exceptions for salary cuts because doing so could land the company in hot water—even if the measures have the effect of widening existing pay gaps, attorneys say.

Many Cuts: Roughly a third of adults in a ...