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Can you lower pay rate after injury? TX/NJ

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  • Can you lower pay rate after injury? TX/NJ

    Hello Everyone,

    We are a NJ based IT firm with a consultant working at a client in Texas.

    He recently fell off a ladder and now must be on light duty. I do not have details as to how long he will need to be on light duty.

    Our client now wants to lower his pay from $50 to $30 per hour because he's on light duty.

    Is that legal?

    Thank you in advance for your help!

  • #2
    Potentially, yes, it's legal but I suggest you speak to your WC carrier before making this decision. While the client may have good reason to pay less for the consultant since he's not doing the full job, you, as his employer, may find it advisable to continue him at his regular pay - otherwise, your WC carrier may be obligated to pay partial temporary disability benefits (i.e. indemnity payments) and that may cost you more in the long run in terms of WC premiums.

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    • #3
      Thanks Beth! I have an email in to our carrier now and I'm waiting for a response.

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      • #4
        What rate your client bills you for his services is a totally separate matter from what you pay him. Beth is correct that sometimes it is best to keep the salary the same rather than reduce it to reflect light duty.
        I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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