In easy English, what is going on with our pay? Please and thank you in advance!
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Let's assume you are an exempt employee. You have an agreement to work for Allstate in exchange for an annual salary of a certain amount. Allstate can break that annual amount up into any number of payments throughout the year (currently 26), but at the end of the year your W2 should show that you were paid the annual salary you agreed to.
In 2020, Allstate has decided to take away one week of pay (justifying it with some accounting mumbo jumbo), with the promise to pay it back when you retire or otherwise leave the company. Your 2020 W2 will show that you were not paid the full annual salary you agreed to; it will be one week of pay less. Allstate has then reneged on your agreement because they are big and bad and can get away with it, and there is no other way to spin it.
When one person takes money from another person with the promise to repay the money at some point in the future, that is the definition of a loan. So, all exempt employees are going to give Allstate a loan of one week of pay next year, which Allstate will keep interest-free for as long as you work for Allstate.
Thank you, guys!
Doubtful. Once you’re the President of Allstate’s personal lines business, there are not many more places to go. Maybe CEO of Allcorp.
So you're saying there's a chance he's leaving soon? God bless you.
In easy English Shapiro is changing something that has been in effect for 40 years in order to boost his bottom line for the year then he’s going to use his golden parachute and move on to ruining another company, it’s what he does.
The pay change goes into effect for the entire company. All units (ok, maybe not the CEO and upper VP's, I don't know how their pay works).
Is this all business units or just northbrook?
They are creating a one week delay. Example: This current pay period is Sun 6/9 through Sat 6/22 but you are paid on Friday 6/21. Starting in Sept there will be a delay, using the example above the payday would be 6//28 instead of 6/21. This sort of makes sense, fewer corrections to prior pay periods due to inputting PTOs late, etc. Of course holding our money for an extra week doesn't hurt them either.