Does a company have to pay back pay?

UPDATED: Jul 14, 2017

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Does a company have to pay back pay?

I am a manager for a fast food chain and my annual review was due over 5 months ago but I just received my raise. They say that they do not owe me back pay back with all the hours I worked. Can they do this?

Asked on July 14, 2017 under Employment Labor Law, Michigan


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

Answered 5 years ago | Contributor

Unless this action violates the terms of a union agreement or employment contract, it was legal. The fact is that a business can set the conditions of work much as it sees fit. This includes when to give a raise or even whether or not to give a raise at all. As a general rule, company policy is not legally binding; it is just a guideline. Accordingly, your annual review could take place whenever your employer chose. You are not owed back wages.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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