Can a company legally cut pay without prior notification?

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Can a company legally cut pay without prior notification?

My wife received a 9% pay cut without notification. Is that legal?

Asked on August 26, 2016 under Employment Labor Law, New York

Answers:

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

Answered 5 years ago | Contributor

So long as this pay cut is for work yet to be done, it is unfortunately legal. A pay decrease can go into effect, without prior notice to the employee, for all furture work hours. That is unless this action constitutes some form of legally actionable discrimination or a breach of an employment contract or union/collective bargaining agreement (neither of which you indicated). The fact is that most employment is "at will" which means that a company can set the conditions of employment much as it sees fit. This includes last minute wage decreases.


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