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Can an employer lower your pay?

By Zippia Team - Jan. 8, 2023

Yes, an employer can lower your pay. The only time your employer would not be allowed to lower your pay is if you were working under a collective bargaining agreement or an employment contract stating you would not receive any pay cuts.

Otherwise, an employer can legally lower your pay and cut your hours. Those who have signed employment contracts for specific annual salaries do not experience this issue.

Suppose an employer cuts the pay of a contracted employee. In that case, that employee has the right to legal recourse against their employer and should seek the professional counsel of an employment lawyer.

However, many employees work under what is called at-will employment. This is an employer and employee agreement that a worker may be terminated or dismissed for any reason without reasoning, warning, or explanation. It also applies to pay reductions and the cutting of employee hours.

Most at-will employees are required to sign documents stating their knowledge of this fact. This protects employers from potential lawsuits for an unjustified lowering of employee wages.

If employees feel that their wages have been lowered due to discrimination, they might have legal recourse. In this scenario, an employee should seek counsel and possible representation from an employment lawyer or attorney familiar with employment law.

Can an employer lower your pay?

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