Ohio State University announced that it will rescind raises for 306 salaried employees, effective Jan. 1. Earlier this year, the university granted these raises to comply with a new federal overtime rule that increased the salary threshold for exempt employees. After a federal judge overturned the rule, OSU decided to take back the pay increases, claiming the raises were no longer legally required.Legally? Fine. Ethically and from an HR perspective? A disaster.
So, let's set the legalities aside and talk about what really matters here: trust.
When an organization makes a promise—especially one that directly impacts employees' livelihoods—it needs to keep that promise. Hard stop. Breaking it doesn't just take money out of employees' pockets, it also sends a loud, clear message: "You can't trust us."
Trust is the cornerstone of any successful workplace. Without it, morale and engagement plummet, and employees start eyeing the door. This decision might save OSU $2 million today, but it will cost it far more in lost productivity, retention, and recruitment down the road.
Bottom line: If you want employees to show up for you, you must also show up for them. Keeping promises builds trust. Breaking them destroys it. OSU is going to learn this lesson the hard way.