Can a manager lower most of the employees’ hourly rate for the previous week’s work without telling them?
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Can a manager lower most of the employees’ hourly rate for the previous week’s work without telling them?
The lowering of wages was not due to any misconduct; it is just a way to save the company money. It is a moving and storage business.
Asked on September 23, 2011 under Employment Labor Law, Louisiana
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
First of all, absent some form of discrimination, generally an employer can cut an employee's wages and basically change the terms and conditions of employment as it sees fit. An employee, in turn, can choose to work for a company or not. The is known as "at will" employment.
However, changes in employment cannot be enforced retroactively. In other words, as in your situation for example, wages cannot be reduced after the fact. Once an employee earns their wages at a stated rate, those wages cannot be reduced by an employer (they can however be changed going forward for future work).
The only exceptions would be if existing company policy, an employment contract, or union agreement state otherwise.
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