HI, my fiancee works for a daycare in texas, and recently many of the employees have been quiting due to the hostility of the new director. She has found a job at another day care that needs here to start in less than two weeks.
She said they sent out a memo that anyone who gave less than a two weeks notice would only be paid at $5 an hour for the remainder of thier employment.Another employee said they also refused to pay a former employee she knew. Is this legal? Shes not under a contract.

Yes and no.

It is legal to cut their pay for less than two weeks notice, going forward, since they have been notified in advance of the policy.

However, they cannot be paid less than the higher of state or Federal minimum wage. $5 does not meet that standard.

They can not pay her below minimum wage.

They can not cut her pay retroactively or for time she has already worked before she was given the notice.

They can legally pay her as little as minimum wage.

They can cut her pay down to minimum so long as she is advised of the cut BEFORE she does the work and the reason they cut her pay is not based on illegal discrimination. Failure to give a two week notice is NOT a protected characteristic.

If they cut her retroactively or below minimum wage have her file a claim for unpaid wages.

KM

Thank you very much for the info

they sent out a memo that anyone who gave less than a two weeks notice would only be paid at $5 an hour for the remainder of thier employment

Violating federal and state employment laws won't help them stop the flood of employees leaving due to bad management.