October 20, 2020

Pay Cut Watch ’20: Dixon Hughes Goodman Is Furloughing Some, Reducing Salaries For All

So, some stuff went down at Dixon Hughes Goodman today. No layoffs, according to a source, so that’s the good news. The bad news is there are DHGers who are being furloughed, plus everybody’s getting a pay cut.

Here’s what we know right now:

1. Furloughs: According to our source, 17% of DHG’s workforce is being furloughed for about 90 days beginning on May 1. Employees will be notified by 4 p.m. this afternoon whether or not they’ve been furloughed. However, furloughed employees will still get all health insurance.

According to our source:

The firm is going to be paying everything needed for the employees to have full health insurance during the furlough.

2. Pay cuts: All DHG employees will have their salaries reduced on a sliding scale from 5% to 15%, effective May 15. According to a slide that we’ve seen, the reduction schedule is as follows:

5% to 15% Depending on Annual Base Salary Only

  • 5%: of up to first $50,000 of annual salary
  • 10%: of up to second $50,000 of annual salary
  • 15%: of annual salary over $100,000

Employee Base Salary = $68,000

  • 5%: First $50,000 = $2,500
  • 10%: Remaining $18,000 = $1,800
  • Total salary reduction: $4,300 (6.3%)

Employee Base Salary = $125,000

  • 5%: First $50,000 = $2,500
  • 10%: Second $50,000 = $5,000
  • 15%: Remaining $25,000 = $3,750
  • Total salary reduction: $11,250 (9%)

In addition, our source indicated that the DHGers who are furloughed for 90 days will also have their salaries reduced when they come back, if the firm is still on the reduced pay schedule.

The firm didn’t say when the reduced pay schedule will end, according to a couple people who reached out to us.

We were told about a week ago that DHG partners were taking a pay cut but we weren’t able to confirm how much.

3. Bonuses: No bonuses for the rest of the year.

We were also told that the firm stopped contributing to employees’ 401(k) plans on April 1.

DHG, which was ranked No. 34 in the 2021 Vault Accounting 50 that came out on April 14, has approximately 2,000 employees and offices in 13 states. By revenue, DHG is the 17th largest accounting firm in the U.S., according to INSIDE Public Accounting.

That’s all we’ve got for now. If any DHGers have anything else to add, or want to get anything off their chest, get in contact with us using the info below.

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