Can an Employer Lower Your Wages Without Telling You?
Even if you know your company is experiencing financial difficulties and layoffs and pay cuts are on the way, you at least expect some warning. After all, you may not be willing to work for a reduced salary if you don't feel as though the lower wage justifies the work you do. However, at the very least, it is important to know whether or not your employer can arbitrarily lower your wages without saying a word.
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Notice
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When an employer cuts your pay, he is required to give you notice before you work any hours under the new rate of pay. The purpose of the notice is to give you a chance to either accept the new rate or decide it's much too low and pursue another gig. Moreover, your employer cannot cut your pay to anything lower than minimum wage, according to the NOLO website.
Employment Contract
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If you have an employment contract and your employer wants to cut your pay, then the company needs to consult with you first. Depending on the terms of your contract, your employer may not be able to arbitrarily cut your pay without negotiating with you first. This gives you an opportunity to talk about the responsibilities of your job in relation to the rate you are making after the cut.
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Recourse
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If your employer has cut your pay without saying anything to you, then start by approaching your human resources representative to discuss the issue. Give the company the benefit of the doubt in that maybe communication with you fell through the cracks. The issue should be corrected in that you are paid for the work you've done at the prior rate and then a pay cut can be discussed moving forward. If she is unable — or unwilling — to remedy the problem, then consult with a labor attorney to discuss your rights, how they were violated and what your next steps should be.
Additional Considerations
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Keep in mind that once you are notified of a pay cut and show up for work the next day to work, the law considers this an acceptance of the cut. You cannot decide two weeks from now that the pay cut is unfair and you are unwilling to work for that amount; your only recourse at that point is to quit. You might also ask your employer if the lower wages is temporary and should the company find itself on more stable financial ground, if your prior wage rate will be reinstated.
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