Can an employer reduce your pay without informing you?
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Can an employer reduce your pay without informing you?
Can an employer suddenly reduce your pay without informing you of the reduction? As in, you were never informed of anything and then just notice a reduction has been made on your paycheck.
Asked on December 6, 2011 under Employment Labor Law, Utah
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Going forward, the employer may reduce you pay at will, so long as--
1) There is no employment contract to the contrary;
2) The reduction is not discrimination against you on the basis of race, religion, age over 40, disability, or sex. (That's under federal law; some states add a few more categories, like sexual orientation.)
3) The reduction is not retaliation for making a protected claim, such as for FMLA leave, overtime, or that you were discriminated against.
Apart from the above, from when you were notified of the reduction onward or forward, your pay may be reduced.
However, reductions may not be retroactive; until you are notified of the reduction or change, you have to paid at your then-in-force salary, rate, or wage.
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