Reports surfaced early this week that associates at Patton Boggs may be forced to pay back overpayments based on the firm’s odd tiered-salary structure. Apparently, associates may initially be compensated in a tier based on higher projected hours for the year. When the actual slotting into tiers is done, though, they can be put into lower tiers, which means lower pay, which means paying back the firm. ATL quotes a firm spokesman
Associates who fall materially short of their hours target will have their base salary adjusted as part of the associate evaluation process. This policy has been in effect for several years. There is nothing retroactive -the policy clearly states that decisions on tiers will be made at the time of associate reviews (which are ongoing). In fact, we choose not to adjust associate pay as much as the policy allowed and capped the reduction. Some associates were paid at a higher tier for the first couple of pay periods in 2009; post their evaluations, their pay will be adjusted to reflect the tier that they are on for 2009. That happens every year.
Sucks right? Think about the harrowing few days some recently laid-off Microserfs experienced.
In an astonishing display of incompetence followed by tactless behavior and then cratering to public outrage, Microsoft sent letters to a number of recently laid off people to pay back portions of their severance package. Apparently, the company did the initial calculations wrong, which meant 25 of the 1,400 people laid off were overpaid by $4,000 to $5,000 (no word on whether Excel calculations are to blame). Business Insider has an example of the letter.
Microsoft quickly realized the error of its ways – thanks in no small part to the widespread vilification. Affected employees will be allowed to keep the money. All’s well that ends well.
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