Peter Stein Quoted on Legal Issues Raised by Salary Freezes

HR Compliance Law Bulletin

Peter Stein, a Member of the Firm in the Labor and Employment practice in the Stamford office and Stamford Managing Shareholder, was quoted on the increasing number of employers implementing salary freezes in the current tough economy, and the potential legal issues they face.

In the article, "Shrinking pay checks: Employers eye salary freezes and more," Stein said: "There is no question employers are engaging in pay freezes. You see it in all businesses. They are saying 2009 is going to be very difficult; and even if it's not difficult, they are battening down the hatches in anticipation of it being difficult."

Stein added that while there are no legal impediments to a pay freeze if it is even-handed, employers should be aware that if those freezes appear one-sided, they may be sending a message to their workforces that is not helpful. Communication is the key.