Demotion and pay cut

If you are being demoted for 6 months
can your boss cut your pay

Asked on March 3, 2017 under Employment Labor Law, Texas

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Does this reduction violate the terms of a union agreement or employment contract? If not, then your pay reduction is legal. That is however for hours worked going forward; not for any that you have already worked. In an"at will" employment relationship, a company can set the conditions of employment much as it sees fit (absent some form of legally actionable discrimination).

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Unless you actually have a signed written employment contract which locks in or guarantees your pay for a defined period of time (for example, a one-year contract), this is legal. Except to extent limited by contract, all employment is "employment at will" which, among other things, means that your pay is completely under your employer's control, and they can change or cut it at will, at any time, for any reason.


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