Does a company have to pay back pay?

I am a manager for a fast food chain and my annual review was due over 5 months ago but I just received my raise. They say that they do not owe me back pay back with all the hours I worked. Can they do this?

Asked on July 14, 2017 under Employment Labor Law, Michigan

Answers:

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

Answered 3 years ago | Contributor

Unless this action violates the terms of a union agreement or employment contract, it was legal. The fact is that a business can set the conditions of work much as it sees fit. This includes when to give a raise or even whether or not to give a raise at all. As a general rule, company policy is not legally binding; it is just a guideline. Accordingly, your annual review could take place whenever your employer chose. You are not owed back wages.


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