Can An Employer Give the Option to: Take a Pay Cut Or Take a Hike?

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Apparently due to "the economy" people are being given an option to "take a 10% pay cut" to remain employed or leave via a severance package. Two things also to consider: Pay cut would be deducted from a salaried position that does not have additional bonuses built in or additionally given; and no change in position or title is granted. Does anyone know? This seems completely UNFAIR?! Feel free to include online links if you know. I'm currently researching myself (for NY State). thank you!
 
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