Can my company cut my pay for no reason other than just wanting to?

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Can my company cut my pay for no reason other than just wanting to?

I have been employed by my company for 3 years and have advanced into a position where I repersent our company while working inside of another busniess. Recently one of my supervisors told me how good of a job I was doing but he wanted to renegotiate my pay. He wanted to move me back into one of our stores which is a demotion and keep the same pay or stay at the position I’m at and take a $ 4.50 and hour pay cut. Can this be legal? All my reviews are great and my attendance the same; no discipline problems or any kind of bad reviews. The business I serve found out and are really upset to the point they have contacted the upper management in their company. Is there any thing I can do to stop this injustice ?

Asked on March 24, 2012 under Employment Labor Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately, unfair and illegal are two different things--many things that are unfair are perfectly legal, and this most likely is one of them. If you do not have an employment contract guarantying your wage or salary, you are an employee at will. Not only can an employer terminate an employee at will at any time, for any reason, but it can do anything short of termination--including transferring, changing shifts or duties, demoting, or cutting pay--at will, too. So despite good reviews, your employer may cut your pay if it wants to.


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