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What rights do employees have when present employer is being taken over by another company

Lancaster, PA |

A month ago my employer reclassified my job and changed my status from exempt to non-exempt, resulting in a loss of significant overtime pay. The following Monday I reported an issue with the HR timeclock application to my manager, who was unaware that the change had been made. A few hours later I received a call from my manager, at which time he explained that the change had been made "accidentally" but would not be reversed. I took a day to think about what had happened and decided not to pursue the issue with HR since it would probably result in a black-eye for me professionally, and might result in denied opportunities in the future. I was unofficially assured that when it was time for bonuses and merit raises, that I would be "taken care of" since my EMV went way up and I'm not near the bottom of my pay grade.
Today I learned that our company is being taken over by another company, and I want to know if in fact I should file a case with HR so that I can protect myself against the total loss of over 25% of my income.

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Attorney answers 1


The biggest problem is that issue of the company being taken over. You are correct now is not the time to make waves, but you must resolve this before the new company comes in and starts cutting staff. That being said, you do not want to drop 25% in pay.

The government agency which would determine if the employer's action of reclassification was illegal would be your state's Department of Labor office You might want to talk with them about your situation. If you are going to file a complaint perhaps it would be better to file it against the old company rather than the new one. BUT in the reality of today's economy you really need to be careful with this.

Look at the PA- DOL website, if possible speak with one of their people. Make sure that you know your rights under the DOL. You may decide to hold off on any action until the new company comes in. Undoubtedly their will be some staff shifting and layoffs at that time. Your new bosses may be able to correct the error. Good luck.

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