Is it legal to be called back from a lay-off and not be informed your rate is less?

UPDATED: Dec 16, 2011

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Is it legal to be called back from a lay-off and not be informed your rate is less?

I do not think it is right that I was not informed that I was working for a lessor amount than I was making before the layoff. And is it right for them to make me wait 90 days until I recieve my benefits back? I have been with this company full-time for over 4 years and I was laid off 7 months ago.

Asked on December 16, 2011 under Employment Labor Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It's not right, but it is legal. When you are laid off, your employment is terminated, the same as if you had been fired or had resigned. The company is under no obligation at all to rehire you, the same as it doesn't have to rehire anyone fired or who quits. If you are rehired, it is for a new job, even if it's doing the same thing. Prior time in service does not carry over, unless the company voluntarily chooses to do so. Therefore, you have to start waiting for benefits again. Also, since it's a new job, they can pay you anything they want for it. (For that matter, even if you had not been laid off, the company could have reduced your salary at will, unless you had a contract.)

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