Leave at reduced rate of pay-unemployment compensation law

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Reference no: EM13990939

A computer company experienced a slowdown at work, and allowed a computer engineer to go on leave at a reduced rate of pay, rather than being terminated. The reduced rate of pay would be about $12 per hour. There are no union contracts or individual contracts that would relate to this proposal by the company. The employee wanted to do it, and the 'leave' went on for six months. Is this permissible under laws affecting employment, or not?

A. This is permissible. B. This is permissible so long as the minimum wage has not risen above $12 per hour. C. This is permissible except for employees who are here under the H-1B visa program, and the employer is a H-1B dependent employer. D. This is not permissible under any circumstances because it bypasses unemployment compensation law.

Reference no: EM13990939

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