How much notice does an employer need to give before changing your compensation package?
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How much notice does an employer need to give before changing your compensation package?
Asked on January 4, 2011 under Employment Labor Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If there is an employment agreement of some kind--including a union or collective bargaining agreement--an employer must abide by its terms as to both required benefits and the process or time frame for changing benefits. However, in the absence of any agreement, the employer does not need to give *any* notice. The employer may say, at 9:01 AM, for example, that compensation will be X now instead of Y, and from 9:02 AM on, it's now X. What the employer can't do is make the change retroactive; that is, the change only takes effect from when notice was given of it forward, and will not effect what the employee should be paid for work done up until the moment of notice.
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