Can a company demote pay without letting the person know

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Can a company demote pay without letting the person know

Husband lost job upon receiving his
final pay check he was dropped 2 hr in
pay and not paid for sick time or
vacation

Asked on November 4, 2016 under Employment Labor Law, Texas

Answers:

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

Answered 5 years ago | Contributor

Most employment is "at will" which means that, absent a union/employment contract to the contrary, a company can set the conditions of employment much as it ssees fit. This includes when and why to reduce a worker's salary (so long as such action is not the result of actionable discrimination). However, such a reducton can only be for future hours to be worked; it cannot apply to hours already worked. In other words, wages cannot be cut retroactively. If your husband's ex-employer will not make up the shortfall, he can either file a wage claim with your state's department of labor or sue for the money owed in small claims court. As for his vacation/sick time, in TX, he only has a right to be paid for his accrued vacation time if there is a company policy that provides for it (or if there is a union/employment contract so providing).


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