Thread regarding Corinthian Colleges Inc. layoffs

10% pay cut could last longer

We were informed by our RVPO that the pay reduction could last longer than the 10 weeks especially if you don't start doing better. Since when are they allowed to use the reduction in pay now as a punitive measure? I'm not sure that's legal.

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Post ID: @OP+wSafp4Y

24 replies (most recent on top)

Anonymous24759- Read the Federal Title IV rules. This has nothing to do with California, or any other specific state. According to the Title IV rules, CCi is prohibited from changing pay, benefits, or any other reward more than one time per 12 months for many employees. I am not suggesting CCi is following the rules.

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Post ID: @1X78+wSafp4Y

I don't know where all this talk about pay cuts being illegal is coming from unless it is California. I understand that state has certain laws that are different from most other states. The 10% mandatory pay reduction is for department assistant chairs and above that are salaried employees. The voluntary 1 week unpaid time off is for salaried instructors and the voluntary unpaid 40 hour time off is for hourly employees. I don't see the people that lost 10% of their pay ever getting it back. It may be temporary until the mandatory 20% pay reduction takes place. When a company starts implementing all these cost reduction measures it is a huge warning that their financial situation is very very dire. This is a desperate attempt to delay bankruptcy but in most cases it doesn't work. You seen the email about toner and stuff, again last minute desperation attempt. Next will be a huge RIF. If you do the math, each week the payroll for 12,000 employees averages about $1,000.00 per employee. If every one looses 1 week of pay that equals $12,000,000. Now if we apply the savings from the latest cost saving measure, $10,000,000 divided by 52 is $192,307.69 per week. Now multiply that by 10 weeks and you have $1,923,076.90. Add that to the $12,000,000 savings from payroll and we have saved the company $13,923,076 in ten weeks. That's a drop in the bucket of a 1.4 billion dollar a year company. That won't even cover a 2 week normal payroll of $24,000,000. Saving a company that is in deep financial trouble takes increased revenue along with cost reduction. CCi is missing a very important part of the equation, INCREASED REVENUE.

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Post ID: @lPj+wSafp4Y

You don't get it, do you? This is dire. Very dire. Very, very, very bad. Look up laws and cry for Justice all you want. CCI is going under and likely won't survive, even with these cost cutting measures. Don't you see that? If we are bickering laws, they will just shut it down altogether. Then want? Do you want 90% or 0% of your pay? Next time you could be getting nothing. So, face reality all. There is nothing you can do about it. Nothing. Call who you want. Sue who you want. It does not matter! It does NOT matter! This is the reality, folks. Right here, right now.

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Post ID: @I4w+wSafp4Y

Everybody is trying to figure out rules and laws. Who cares? It's done. They simply don't have the money and that's all there is to it. Next stop will be layoffs anyway. So this argument will be mute pretty soon.

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Post ID: @3HO+wSafp4Y

"10% will become 100% when CCI runs out of cash in the next 60 days". Fixed it for you.

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Post ID: @Dtq+wSafp4Y

Anonymous24642- It's simple. Since when does CCi play by the rules? The best they do is try and make it appear like they are playing by the rules.

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Post ID: @sK9+wSafp4Y

24635 - okay, so you're proven wrong. The 10% went into effect for our admissions team, and all of us had received adjustments within the last 12 months. So how the hell do you explain that?!? Seems kind or ironic that the pay rules were to stop us behaving badly, which they obviously failed at, and now the scuzziest admissions people are trying to use them to save their paychecks. You loser!

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Post ID: @WgV+wSafp4Y

Two things: 1. ED made it clear that the monitor cannot do anything illegal, like waiving the pay rules. 2. So you're allowed to get raises if you do well, but they can't cut pay if you don't? CCi is only allowed to change pay no more than one time each 12 months. The pay change can be up or down, but the pay cannot be changed again for the next 12 months.

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Post ID: @zxi+wSafp4Y

If the cuts were approved by the monitor, we are really in the shit. It's bad guys. Very, very bad.

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Post ID: @HIy+wSafp4Y

24623, you are correct. And this paycut is only going to precede layoffs. Those will be next, and sooner than people think. And will likely involve those who don't follow the party line and get on board with the cut.

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Post ID: @Pn3+wSafp4Y

Title IV rules can be waived when the monitor has been appointed by the head of the Department of Education. The 10% cuts were approved by the monitor.

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Post ID: @jDg+wSafp4Y

10% will become 100% when CCI runs out of cash. Show me any indication that we are not headed that direction.

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Post ID: @Fvf+wSafp4Y

You guys are so stupid. You really don't get how lucky you are to have jobs. Layoffs are real! And they will have more! Do your jobs, shit up and take the paycut. If you don't, you won't have jobs. And there won't be a company to sue!!!! Shut up and be grateful! Some if us who did our jobs and didn't complain got laid off. Nobody's immune.

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Post ID: @DEt+wSafp4Y

Why don't you go talk to them about it and take a stand. I dare you.

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Post ID: @EUf+wSafp4Y

CCI does whatever it wants. Why is it on for you to watch them break the law on behalf of students, but when it comes to you, it's an utter shock!

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Post ID: @kXl+wSafp4Y

So you're allowed to get raises if you do well, but they can't cut pay if you don't?

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Post ID: @rfE+wSafp4Y

Quit. Free country.

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Post ID: @moz+wSafp4Y

Why don't you sue? The Justice system is swift.

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Post ID: @msN+wSafp4Y

How about the 10% cut for Director of Admissions & Campus Presidents. That might be fine, if there was no other pay change in the last 12 months, but then the pay cannot be increased after 10 weeks.

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Post ID: @7Vz+wSafp4Y

If you don't volunteer you pay is not cut.

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Post ID: @0du+wSafp4Y

Anonymous24591- Sorry but there are Title IV rules about pay.

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Post ID: @L2V+wSafp4Y

Totally legal if you are an at will employee.

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Post ID: @PlI+wSafp4Y

It might be legal to reduce hours without reducing the rate of pay, however.

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Post ID: @VDI+wSafp4Y

It is not legal in admissions, including the campus presidents.

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Post ID: @0U0+wSafp4Y

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