Can a place of employment take away a raise given after a year of employment due to minimum wage being increased?
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Can a place of employment take away a raise given after a year of employment due to minimum wage being increased?
This was done without written or verbal communication.
Asked on January 18, 2012 under Employment Labor Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you do not have an employment contract guarantying your salary, then the employer may take your raise away at any time, for any reason, without providing any prior notice. When there is no contract, employers have complete discretion as to what to pay employees, so long as they honor the wage and hour laws (e.g. pay minimum wage, or overtime, as applicable.) If there is a contract, on the other hand, it is enforceable.
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