Can an employer in AZ retroactively cut my salary?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an employer in AZ retroactively cut my salary?
We were told there was going to be a 20% pay cut across the board and that it was retroactive to the beginning of the pay period in which we already worked 30 hours. Is this legal in AZ? I know some states don’t allow this type of retroactive reduction, I understand going forward it is at their discretion for the most part, but I was just concerned about the 30 hours worked before they communicated the reduction.
Asked on June 23, 2009 under Employment Labor Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
No, it's not legal anywhere. Once you have worked the hours, you have earned the money and companies may not--without your agreement--go back and change the amount they paid, any more than you could go in a store, buy a couch for $1,000, then after it's delivered and you get the credit card bill, say you're only going to pay $800 for it.
The reason I say "without your agreement" is that (1) if the company is in danger of not being able to continue without a retroactive pay cut, you may choose to agree to it; and (2) the company would be within its rights to terminate you if you don't agree to the cut (e.g., if they don't get enough retro savings, they have to eliminate jobs)--though they'd have to pay you in full for work to date. So unfair as it is, you may choose to accept the cut.
However, it is for you to accept--once you worked it, the money is yours.
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 AttorneyPages.com 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.