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Reduction In Pay Virginia

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  • Reduction In Pay Virginia

    Is it legal for an employer to reduce an employee's hourly rate for any reason? If so, even in an exteme hypothetical as an employee making $100 per hour being reduced to minimum wage???
    Last edited by Reindeeriv; 10-05-2006, 04:53 PM.

  • #2
    Done in advance of work performed, a reduction in rate of pay is legal everywhere so far as I know, unless there is a contract or collective bargaining agreement in effect.

    Even in the hypothetical case of going from $100/hr to the federal minimum wage of $5.15 would be legal. Of course, anyone who is actually worth $100 per hour won't accept the cut in pay, would quit and likely get unemployment as the Unemployment Insurance decision makers will characterize the change resignation as attributable to the changes in condiditons of employment.
    Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.


    • #3
      To reiterate, no law in any state prohibits wage reductions. Most, but not all, states require that you be notified in advance of such reductions, but the reduction itself would be legal unless you have a binding contract or CBA that says otherwise.

      The MOST you are legally entitled to (again, outside of a binding contract or CBA) is the higher of state or Federal minimum wage (assuming they are different - they are not in many states).
      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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