Hello Everyone: I just read that the owner of the Philadelhia 76ers and New Jersey Devils is considering a pay reductions for salaried employees (over $50,000 annually) up to 20%. 

My question is if companies are considering a "tiered reduction" approach, what are the tiers and percentages?  For example is a tier setup as follows reasonable: 

• Salaried employees earning $50,000-$75,000: 5% reduction
• Salaried employees earning $76,000-$100,000: 10% reduction
• Salaried employees earning $101,000-$125,000 15% reduction
• Salaried employees earning $125,000 20% reduction

This is just an illustration for discussion.  Please let me know your thoughts.

Thanks and be well!

We considered something similar to this, but we planned to align the tiers based upon our internal classifications (ie: Executives  70%, Salaried Exempt 75% ). We were modeling an extreme, and the math works out that 70% is the lowest we could go for exempt workers without dipping below the $684 threshold for exempt status.

We also had some discussions around what meets the 'bona fide" criteria listed in #7 from the WHD/DOL fact Sheet #70 

https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs70.pdf

After much discussion, we have not made any reductions at this point. An (unconfirmed) news article listed a local company plan to cut Exec's to 40% and remaining Salaried Exempt to 50% for the month of April.

We are based outside the US and have implemented a tiered pay reduction for a period of 3 months. It applies to professional and managerial levels only and is between 10% and 30% of their basic salary. Thee total monthly salary is made up of 70% basic salary and 30% allowances.