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

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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

Answers:

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

Answered 12 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


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