Can my company lower my pay without lowering my job description?

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Can my company lower my pay without lowering my job description?

My franchise announced new job requirements and new pay levels. No other location is doing this. I am currently the highest “level” at my location. The corporate contract I signed said I get $8/hour with a .25 raise every “promotion” up to $9. After that it can vary depending on sales but never less then $9. I am currently at the $9. In the new job requirements I excel in all categories but 1. Because I lack in the 1 category they are lowering my pay to the lowest possible $7.50. I am still required to work at the same top level, but now at $7.50.

Asked on July 14, 2011 under Employment Labor Law, Texas

Answers:

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

Answered 9 years ago | Contributor

Absent an employment/union contract to the contrary, existing company policy prohibiting this, or some form of discrimination as a factor in your treatment, this is perfectly legal. In an "at Will" employment relationship you can choose to work for an employer or not; its your choice. In turn, an employer can hire/fire or promote/demote/, or increase/decrease either salary/wages, and impose any other term of employment as it deems fit. All with or without notice and for no reason or any reason whatsoever.


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