Can an employer just demote and retract health insurance without notice?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an employer just demote and retract health insurance without notice?
I have worked at a place for over 20 years with many owners in and out. As of recently, a new owner came in and decided to demote me to a supervisor, However, he let me keep the insurance the company pays for and knocked me down to hourly rather than salary, which I had been. The other day, he decided he didn’t like something and told somebody to tell me he was knocking me down $9 more and taking my insurance. Is this allowed?
Asked on January 16, 2012 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
As a general matter, unfortunately, yes, it is allowed: employers can decide how to compensate employees, what benefits to provide them, whether to demote them, etc.--just as they can decide whether to fire an employee entirely. Having worked there for 20 years provides no legal protection.
The employer could do not this only if--
1) You have an employment contract or union agreement protecting your title, job, salary, and/or benefits;
2) The employer is discriminating against you on the basis of a protected category, such as race, sex, religion, disability, or age over 40--this does not mean the employer cannot take negative action against you if you are over 40, for example, only that he cannot do this simply because you are 40, but needs some other valid (not just a pretext) reason; or
3) You are being retaliated against for having brought some protected claim or complaint (such as for overtime or that you were being discriminated against).
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.