Can a company cut your salary to below what you started at?

UPDATED: Jun 3, 2009

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Can a company cut your salary to below what you started at?

If you have worked for said company for 5 or more years and they are cutting everyone salary by 15%. Can they put you below the wages that you started out 5 years ago?

Asked on June 3, 2009 under Employment Labor Law, Indiana


J.V., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

these new pay cuts are a territory that has not been looked into very much as the concept is really a new one. Although I advise you to speak to HR and if you are not satisfied call a local attorney who deals in this area of law in your general vicinity.

However without having a specific answer geared towards your location the pay cuts that are being done have been found legal thus far. You always can look to your employment contract to check for any language that may help you make a case however without any discriminatory actions it has been pretty acceptable for employers to do across the board pay cuts in the recent past

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.

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