Cam my employer drop my pay afterI was demoted?

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Cam my employer drop my pay afterI was demoted?

I was demoted as a foreman of a roofing company to a laborer. With my first check after my demotion I noticed my pay was cut by $1.00 an hour? Is that allowed?

Asked on November 18, 2011 under Employment Labor Law, Virginia

Answers:

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

Answered 9 years ago | Contributor

As a general rule a demotion and corresponding wage reduction are allowed unless there is a union agreement, employment contract, or existing company policy to the contrary. Also, this wage reduction cannnot be due to some form of actionable discrimination, retaliation, etc.

In an at will employment arrangement an employer can set the terms and conditions of the workplace much as it sees fit. For their part, an employee can continue to work for an employer or quit.

Specifically, it is legal going forward but typically an employee should be notified of it beforehand. As for reducing your pay after the fact, that may or may be a legal violation, depending on the specific facts and controlling statutes in your jurisdiction. You should consult with an employment law attorney or your state's department of labor as your rights in this situation.


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