Pay cuts are usually legal. They are often done for financial reasons, such as a recession or the need to keep the company afloat. There are some instances in which pay cuts are illegal. If you received a pay cut for the following reasons, you may want to speak with an employment law attorney who is familiar with the state and federal laws that apply to your situation.
You do have laws protecting you, and there are resources available to help ensure that employees – like you – are treated fairly throughout the employment process. Be sure to maintain evidence and supporting documentation for your claim for an illegal pay cut.
If Your Employer Doesn’t Notify You
If you get a surprise pay cut, it is illegal. Employers are obligated to pay employees the agreed pay rate. If employers want to make changes to that rate, they must first notify the employee and the employee must agree to it. There is a specific process and proper protocol that must be followed.
An employer cannot wait and tell an employee that the paycheck that they have already worked for and earned is going to be less than expected. They cannot change a pay rate for hours that have already been worked and pay that has already been earned.
If your wages are going to be cut, your employer must give you adequate notice. You can then decide if you plan to keep working there or if you wish to resign from your position. They must treat you fairly and give you notice so you can decide if you plan to continue working for the lower rate. You have the right to be given fair notice, and if your employer neglects to give you that opportunity, you can pursue legal action.
Retaliation
If an employee files a complaint about sexual harassment or some other kind of inappropriate or unethical behavior, so the employer cannot lower the worker’s pay rate to retaliate against the employee. There are laws that protect employees from retaliation if you report illegal or unethical work practices.
There are specific laws that protect from retaliation. If you believe your employer retaliated against you, you should speak with an employment law attorney who is familiar with the laws and who will know how to proceed with a claim against your employer so you can recoup compensation for your damages. You will want to make sure your employer is held responsible for the damages that they caused.
Discrimination
Pay rates cannot be lowered by an employer because of gender or race. An example of a discriminatory pay cuts would be if all men were given a pay cut, but none of the women saw decreased pay. Another example would be if everyone older than 40 got a pay cut, but workers younger than 40 didn’t get their pay cut. Both of those examples would be considered illegal based on the federal laws.
When You Have An Employment Contract In Place
When the employer has a contract with their employees, they have an obligation and legal duty to pay them the set rate, which is agreed to in the contract, for a set amount of time. If there is an employment contract in place and then your employer cuts your wages, then the laws have been broken.
You have resources available to protect you, so you can recover your losses that you have suffered because of the wrongdoing of your employer. There are laws in place to ensure fair, ethical treatment of the employees and to make sure that everyone is treated fairly and equally.
Speak With An Employment Law Attorney
If you have been the victim of what you believe is an illegal pay cut, you should speak with an employment law attorney who can determine the best way to proceed with your claim. When you speak with an employment law attorney, be sure to go over their payment process. Some lawyers will require a retainer to be paid upfront while others will take such cases on a contingency basis.
You do have limited time to pursue a claim in such situations. Usually, you will only have 180 days to get your claim filed. If you wait too long, you cannot recover compensation for your damages by pursuing a claim against your employer. Complete the Free Case Evaluation Form on this page to share the details with an employment law attorney who handles such claims in your area.
