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Can my employer change my rate of pay for the day after I already worked? Michigan

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  • Can my employer change my rate of pay for the day after I already worked? Michigan

    Long story short, I was paid a salary, but my employer was trying to deduct 5% of our pay for each day we did not talk on the phone for over an hour (I am in sales). Once I pointed out it is illegal to deduct money from our paycheck, he changed the pay plan.

    Now he is paying us hourly, however at the end of the day, if we don't have a certain amount of time on the phone, he is reducing our pay for the day by $5-$15 per hour based on the amount of time we talked on the phone. We are still paid at least minimum wage. So for example, I start the day off making $25 per hour. At the end of the day, I only have 55 minutes of time on the phone. My hourly wage gets reduced to $20 an hour. If I only had 25 minutes on the phone, it's reduced to $10 an hour.

    One day I had 5 sales (thousands of dollars), which is a company record, and because I was so busy turning all the paper work, I did not have enough talk time and got my pay reduced.


    Is it legal to determine your hourly rate of pay, AFTER you already worked for the day, and based on your performace?

    Thanks!

  • #2
    also FYI - I am not paid commision on top of the hourly rate. Our "pay rate level" is determined on the amount of sales bought in the prior 2 pay periods, and then our hourly rate every day is based on the amount of time we spend on the phone.

    Comment


    • #3
      You are going to need someone expert in MI labor law, and I am not sure that we have one of those on this site. I can say that there a Common Law principal that pay rates cannot be retroactively changed. In theory MI could write a specific labor law provision to over ride Common Law. I have no idea if they have.

      Not your question, but your boss is an idiot. If he wanted to have a certainly legally policy, he would use a lower base rate, then conditionally pay a bonus only if when all conditions where meet. It is MUCH easier to write a legal version of that kind of policy then what you are describing.

      Also not your question, but at some point the only solution to a bad employer is to change employers. And file a wage claim on your way out the door. It works or it does not, but at what point you have left, there is no longer a down side to filing.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

      Comment


      • #4
        Thank you Daw, you also responded on my last post about my problems with this company, and you had the same opinion about my boss then LOL.

        I am ready to quit my job, as well as the other top producing sales person with our company. We are small, about 10-15 employees, and the company is not doing very good. We are not getting paid on time. We find out Thursday, that we are not getting our whole paycheck on Friday, because we don't have enough for payroll. This happens all the time. We also found out he has not been matching our IRA like he said for the last 3 years, which we found out ourselves, not by him telling us. He also owes me about $4k in wages from November to January which we agreed to work for half pay to keep the company from closing, and he would pay us the rest later, plus 15% interest. I could go on and on about the things being done wrong here.

        There are so many things going on here, that I have decided I am done. I have tried to stay loyal, and have been here since 2002. I love the job itself, but my boss does not know how to run a business or manage money. He is paying google for our advertising and other bills, BEFORE he pays employees.

        The 1 thing is, I want to collect the money he owes me before I leave. If me and this other person quit, the company will not be around long, as we bring in a big % of the income. However, if we do stick around, I do not see us making it through the end of the year anyway.

        We have had a couple of rough sales weeks, and I want to be able to put in my 2 week notice, and say I want the money owed to me by my last day of employment. He owes me about 6k of wages, and unpaid IRA contributions.

        If you have any suggestions on how to go about demanding the money that is owed to me that would be great!

        Thanks for your help DAW!

        Comment


        • #5
          Originally posted by bcjm13 View Post
          If you have any suggestions on how to go about demanding the money that is owed to me that would be great!
          If you do not get a good answer, go to a local MI labor law attorney. Buy an hour worth of advise. Sometimes federal labor law is enough, but not with your question.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

          Comment

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