Everyone expects regular salary increases, but can never imagine that their salary could decrease. But wage cuts can happen. Sometimes it is legal for an employer to reduce an employee`s salary, sometimes it is not. This means that your employer can legally reduce the hours of your full-time employees to part-time or less, and reduce your salary as much as they want – as long as they never violate the Fair Labor Standards Act (FLSA) by falling below the minimum wage (federal or state, the threshold is the lowest). Even if you work overtime during your pay period, you are still entitled to an hour and a half. If your salary is reduced, your employer must inform you in good time. You can then decide if you want to continue working there or if you want to leave your position. They must treat you fairly and notify you so you can decide if you want to continue working for the lower rate. You are entitled to fair notice, and if your employer does not give you this opportunity, you can take legal action. Switching to a job with fewer responsibilities in your workplace will often come with a pay cut. If you are demoted and your previous salary is much higher than what others earn in your new position, you will likely have a reduction in your salary. This means that you can quit your job before you do a job at the lower wage rate offered.

This is legal and may make the most sense to you if your employer orders a pay cut. Since a pay cut is detrimental to employees, it is imperative that the boss receives the same percentage of salary reduction if a company has to reduce its salary for financial reasons. Another example of where it is appropriate to reduce an employee`s salary would be a substantial job change. If a downgrade occurs and the previous salary is significantly higher than what other people in the new position receive, a pay cut might make sense. There is no federal law requiring employers to notify their team after making changes to an employee`s salary, but many state laws require it. If you find yourself in a situation where you discover that the pay cut you received was illegal after leaving a job, you can file a complaint with your State Department of Labor. While this is not a guarantee that they can help you, they can at least follow up and investigate the situation. There are different types of wage cuts, not just wages. The most common types are: Salary cuts are usually legal. They are often carried out for financial reasons, such as a recession or the need to keep the business afloat. There are cases where wage cuts are illegal.

If you received a pay cut for the following reasons, you should talk to an employment lawyer who is familiar with the federal and state laws applicable to your situation. If you are still employed and your salary has been reduced by law, it is best to solve the problem before entering with the government immediately. One of the first steps to take is to use payroll to clarify whether the salary was intentionally or accidentally reduced. Errors do occur, and if they do, your payroll department can correct the error quickly. If you get a surprise pay cut, it`s illegal. Employers are required to pay employees the agreed wage rate. If the employer wishes to make changes to this tariff, the employer must first notify the employee and the employee must consent to the change. There is a specific process and an appropriate protocol that must be followed. Unfortunately, an employee can`t just say “no thanks” to the reduced payroll, so many often quit because they can`t agree on a new payroll.

A boss can`t demand that you work at a rate you didn`t agree to, but you can`t force him to pay you at a rate he doesn`t agree with. If the employer has a contract with its employees, they are bound and legally obliged to pay them the fixed rate agreed in the contract for a certain period of time. If there is an employment contract and your employer then reduces your salary, then the laws are broken. If your employer has reduced your salary or hours, you may be wondering if it`s legal. In many cases, it is legal for employers to reduce employees` hours of work or wages. Random employees are usually not guaranteed a certain number of hours of work per week or that their salary will remain the same. Unless you work under a collective agreement or employment contract, your employer can usually reduce your hours of work and wages. However, there are situations where working time and wage cuts are illegal. Swartz Swidler`s lawyers can help you determine if your employer acted illegally when your pay or hours were reduced. The materials available on this website are provided for informational purposes only and not for legal advice. You should contact your employment lawyer for advice on the legality of a particular problem or problem.

Use of and access to this website or any of the email links contained on the website does not create an attorney-client relationship between us and the user or browser. This is the most important rule for wage cuts. The employer must pay you the agreed wage for the work already done.