Can my employer cut my pay?

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Can my employer cut my pay?

I have been working with this company for 1 year. I received an 18 cent raise 2 months ago and now they want to make a pay cut of 3% to anyone who makes over $15/hour. If they do this I will be getting paid less than what I started at. Can they really do this?

Asked on September 28, 2011 under Employment Labor Law, Texas

Answers:

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

Answered 10 years ago | Contributor

Yes, you employer can do this. That is unless this pay cut violates company policy or you have an employment contract or union agreement that prohibits such a decrease. Otherwise, you are an "at will" employee. This means the you while you have the right to work for this particular employer or not, in turn this employer has wide discretion in setting the terms of your employment. This includes increasing/decreasing salary, with or without notice. The is true so long as such action is not the result of any form of actionable discrimination.

Note: This pay cut can only be enforced for wages going forward. That means, that any hours worked prior to this policy going into effect, must be paid at your previous pay rate.


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