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Promotion with pay decrease

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  • Promotion with pay decrease

    I was recently promoted within the non-profit organization that I work for, from a non-exempt to an exempt position. By initiating the process to have my job description revised to reflect the increased responsibility of my work, I was told my pay would also increase. However, after the new upgraded position was approved, they offered me a salary that was less than what I was making previously. When negotiations failed, I told them I would just go back to my old position. The organization told me my old job did not exist anymore, and that I had to take the new position with more responsibiilty at a lower salary or leave. Is it legal to promote someone under the pretext that they will get a pay raise and then cut their compensation? I am in the state of GA. Many thanks for any advice.

  • #2
    Nothing in the law of any state requires that you receive a pay increase upon promotion or the acceptance of new responsibilities. Nothing in the law of any state prohibits an employer from lowering your wage as long as (a) it is not lowered below minimum wage and (b) you receive whatever notice, if any, is required by your state law.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Thanks for your help - How would I go about finding out what notice my state requires?

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      • #4
        You'll have to contact your state department of labor. Note that not all states require any notice.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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