Can my employer change my pay rate to minimum wage?

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Can my employer change my pay rate to minimum wage?

My employee handbook says: “Failure to give 2 weeks written notice will result in your last paycheck being calculated at minimum wage…”. Is this legal?

Asked on June 19, 2011 under Employment Labor Law, Ohio

Answers:

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

Answered 9 years ago | Contributor

I'm afraid that yes, your employer can do this. That is unless you have an employment/union agreement that controls here or this action is a result of discrimination. The fact is that your pay reduction was a part of legitimate stated company policy. You knew (or should have known) of this consequence in advance of not providing adequate notice. If you were not informed of your employer's policy prior to leaving and then after the fact your pay rate was reduced on your final paycheck, you would have a claim. But such are not the facts presented here. You should be aware that the majority of employment arrangements are "at will".  What this means is that an employer can increase/decrease salary/hours, promote/demote, and generally impose requirements as it sees fit.   


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