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


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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.