Taking Pay Cut: Smart or Stupid?


Brooklyn's Chereen Marshall did what so many of you are doing. She took a "pay cut" of $110 weekly to have a job as a cosmetologist. Now, she wonders if that was smart or stupid. On unemployment, Marshall received $325 every week. After hunting for months, she accepted a job for $215 weekly.

A number of law associates at Mayer Brown accepted pay cuts of $100,000 each to be farmed out from the law firm to work onsite at its corporate clients. Long Island teachers agreed to a $900 annual temporary reduction in salary.