Salary cut

My employer of 27 years has made some really bad investments recently. Now he just announced that he is cutting all of our salaries 10. I was not asked to sign anything. Does that mean I have to agree to it?

Asked on May 28, 2016 under Employment Labor Law, California


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

Answered 4 years ago | Contributor

Actually, you may not have any rights in this situation. That is unless this action violates a union agreement or employment contract or constitutes some form of actionable discrimination (which it does not appear to). Otherwise, in an "at will" employment relationship, a company can set the conditions of work much as it sees fit. This includes salary cuts. For their part, an employee can comply with the change, complain and risk termination, or quit.

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