Is it okay for a company to reduce your salary rate just 1 month after hiring?

UPDATED: Sep 30, 2022

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Is it okay for a company to reduce your salary rate just 1 month after hiring?

I have a concern that you may be able to advise me on or point me to another person to consult with. While I was working at a Hospital through January and received an offer for a position at hime health company. I accepted the position because it was a substantial pay raise at least 20 higher. I’ve worked at the new job for 1 month now and during my 30-day review 3/17/17 I was notified that the pay rate is being adjusted down to a significantly lower rate. Realistically their original offer was pretty high but at the same time I wouldn’t have quit my previous job for a pay cut or a lateral move. I’m going to present them with a counter offer and hopefully resolve the issue without involving others. It seems to me that they hires me under false pretenses. I live in a small town where jobs are very limited so my previous job is no longer available. I want to make sure that I know my rights, that I’m being treated fairly, and that I continue to be

financially secure.

Asked on March 19, 2017 under Employment Labor Law, Idaho


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Unfortunately, the only real question is whether you had a written employment contract with them for a definite time, such as a one-year, etc. contract, which contract guaranteed you that wage. If so, you can enforce the terms of the contract, in court if necessary; the employer cannot pay you less than they contracted themselves to pay.
However, without a written contract, you are an employee at will and an employer may change an employee at will's compensation at any time, for any reason, including a month after hiring. Since they have the right to do this, you would not have any recourse against them or right to demand that they pay you the earlier rate; they are allowed to reduce your rate now, if they want.

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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