Can a company cut off an employee’s mileage pay, revamp it, and leave the employee at a loss?

UPDATED: Oct 1, 2022

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Can a company cut off an employee’s mileage pay, revamp it, and leave the employee at a loss?

I used to be paid a flat rate plus of going rate of fuel to equal a mileage check totaling $500 monthly. my employer cut that out and revamped it to straight mileage on company time which leaves me at a $6,000 pay reduction. My company has no solution for me and they gave me no notification of the change.

Asked on January 25, 2018 under Employment Labor Law, Indiana


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Unless mileage pay is required under the terms of a union agreement or employment contract, it is not legally required to be given. Accordingly, if an employer gives such pay, then at it discretion it can withdraw it or otherwise change it (assuming no form of actionable discrimination is the reason for the change).

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