Can an employer lower your salary without your knowledge and pay you for work already performed at that lower rate?
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Can an employer lower your salary without your knowledge and pay you for work already performed at that lower rate?
I have been working for a specified salary since november 28. I started out as a 1099, but as of Feb 27 became a salaried W-2 employee. I will get my first check tomorrow. However, yesterday I was informed I will be making 16k less a year and my check tomorrow for work performed the last 3 weeks, will be paid at that new lower rate. Is that even legal to do?
Asked on March 23, 2017 under Employment Labor Law, Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If you do not have protection under the terms of a union agreement or employment contract, then you are an "at will" worker. And in such an employment arrangment, a company can set the conditions of work much as it sees fit, absent some form of actionable discrimination. Therefore, it can reduce a worker's pay without notice. However, it can only do so for work not yet performed. It cannot be for work that has already been completed; in other words a reduction in pay cannot be retroactive. This all assumes of course, they you were not told or otherwise informed of this pay decrease at the time that you became a W2 employee.
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