Hello. I work 3rd shift in a grocery store. about 2 years ago our company was bought out by another store. the new company pays a $2.00 flat rate shift differential, while we were already being paid 20%. The ex-owner informed us that they worked it into the sales contract that we would not receive pay cuts or be laid off, and the new assistant CEO told us we would remain grandfathered and keep the 20% differential so long as we remained in the same position. starting 2 weeks ago our paychecks showed a change--without any prior notification--to the $2.00 flat rate differential. I am just wondering if they can legally cut our pay rate in this way. thanks in advance.

Did YOU have an employment contract? It would be very rare for employees doing nonexempt-type labor to have one. If I'm understanding you correctly, the agreement for the sale of the company specified "no pay cuts"? Honestly, I have no idea whether that would be even enforceable as far as the employees are concerned. Wage and hour law does not require increases at all, unless you are making less than minimum wage.

You do typically have to be informed in advance of a pay cut.

having said that, it is perfectly legal to reduce your pay. And legal for you to leave and refuse to work for the reduced pay.

Hello,
My mother was promoted to manager of operations, over-seeing several locations for a high end shoe store & assistant manager for one specific location, getting paid an hourly rate of $15 an hour plus commission. She did not get a raise for the promotion. She was then given a pay cut of almost 50% with no notice. She was bumped down to $7.50 an hour plus commission after working for this company for several years. Is there any legal recourse she can take? Is it legal to cut an employee's pay in half, when still working full time?

Thank you in advance for your response.
Anissa Deptula

you will get more replies if you start your own thread, It is not polite to hijack another person's thread and to bring back a post that is over 6 months old.

It would have been nice if you had opened your own thread instead of resurrecting a dead one from several months ago.

Pay cuts are not illegal per se. All any employee is entitled to under the law is the higher of state or Federal minimum wage. Unless the employee has a contract that guarantees a particular wage, an employer may legally cut an employee's pay as long as it does not go below minimum wage - state minimum wage in MA, since MA minimum wage is always higher than Federal.

In most states (not quite all)states, prior notice must be given - however, in many states, there is no specific amount of notice that must be given. You can come in and find a notice over the time clock: "Effective today all wages are cut by 10%" or whatever, and in most (not quite all) states that would be legal. Even though MA is my own state I don't know how much, if any, notice is required; first, I don't do payroll, and secondly, I'm not known for cutting my employees' pay. Patty or DAW or Robb or Scott will probably know.

But even if more notice was required than was given, the employer would only be required to pay at the higher rate until the end of the required notice period. The pay cut itself would still be legal.