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Nale
07-22-2004, 02:38 PM
I would like to know if it is legal for a company to decrease your pay. I was hired by my employer to make a certain amount and was given the title of a senior administrator and within 4 months of getting hired my boss wants to reduce my pay and take my title away. i think he wants to reduce the pay by about $5 an hour. What should i do. i would rather be fired and look for a new job while collecting unemployment (which i have never been on unemployment before). please answer me back. I'm not sure who to contact about this issue. If you could even lead me in the correct direction i would greatly appreciate this.

Thanks,
Nale

Sue
07-22-2004, 02:41 PM
I would like to know if it is legal for a company to decrease your pay. I was hired by my employer to make a certain amount and was given the title of a senior administrator and within 4 months of getting hired my boss wants to reduce my pay and take my title away. i think he wants to reduce the pay by about $5 an hour. What should i do. i would rather be fired and look for a new job while collecting unemployment (which i have never been on unemployment before). please answer me back. I'm not sure who to contact about this issue. If you could even lead me in the correct direction i would greatly appreciate this.

Thanks,
Nale


As long as you are not under contract, and your pay is not below minimum wage, it is legal to have your pay reduce.
In times of hardship and recession, it is actually common for a company to reduce hours, pay or withhold pay increases and place hiring freezes.
As far as unemployment, you don't want to be fired, but rather laid off...
Have you spokent o your supervisor as to why they took your postion and lowered your pay? Did you get anything in writing as to why they did this?
Be careful not to do or say anything that can be construed as "misconduct" because if you do, that can prevent you from receiveing unemployment if you are let go.

Isis
08-16-2004, 10:38 PM
Nate,

The same thing is happening to me. I work for a small law firm and have worked in litigation with another employee for two years. Recently this other employee went to the boss and told him that she could handle the whole department by herself. I was told I was being moved to the settlement department and would be involved in final accounting and collection of all outstanding medical bills, liens and other expenses in determining the total deductions subtracted from each clients settlement award. I am also being moved to a tiny windowless cubicle on the other side of the building. I turned in my time sheet today and noticed that my hours were multiplied by .75 less an hour. Before I gave my time sheet back to my employer I crossed out the reduced amount and replaced it with my regular wage. I gave my time sheet back to my employer without saying anything. Nothing was said to me when I changed positions that I would be receiving less money. What I would like to know is, can an employer change your wage without notifying the employee first? I won't know until tomorrow, when I get my check if they made a mistake or if my wage is being lowered.

Nate, I know how you feel, but I can't afford to quit and they are not going to lay me off or fire me, because they do not want me to collect unemployment. They are probably hoping I'll quit.

LConnell
08-16-2004, 11:13 PM
Numerous courts have interpreted FLSA to state that reduction in wages is legal, so long as the employee continues to meet the minimum wage requirement.

The interesting question is whether employers are required to notify you of your wages in advance of you earning them. While FLSA states that employers must keep records indicating the regular hourly rate of pay, I couldn't find anything that states that the notice must be in advance. Several states have requirements for notification of the wage to be earned. What state are you in?

Isis
08-17-2004, 07:55 PM
Thanks for the information. I searched the California Labor Code for an hour before I found this site. I'm adding Labor Law to my favorites. I got my paycheck today and to my relief my wages were unchanged.

LConnell
08-17-2004, 08:28 PM
Yea! Good for you! Let us know if we can ever help you again.

Sue
08-17-2004, 08:31 PM
Thanks for the information. I searched the California Labor Code for an hour before I found this site. I'm adding Labor Law to my favorites. I got my paycheck today and to my relief my wages were unchanged.
Thank you for letting us know and for the positive feedback on the labor talk board!
Sue

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