Can an employer lower prices in piece rate work the without telling employees first?

Asked on September 17, 2015 under Employment Labor Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, the employer may not it is illegal and constitutes, among other things, breach of contract i.e. breach of the oral/verbal agreement that for doing X work, you will receive $Y dollars and possibly of the labor laws as well. You could contact your state labor department and try filing a complaint you could also, either individually or as a group, sue the employer for the money. If you hire an attorney, it's almost certainly better to do it as a group if you want to avoid legal fees, you can each sue individually "pro se" or as your own attorney.
An employer may change the rates at will after notice if there is no written contract preventing that but work already done must be paid at the agreed-upon rate in effect at the time the work was done.

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