If a company hires you for hourly pay and then hires a new general manager, can they switch you to a flat rate?

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If a company hires you for hourly pay and then hires a new general manager, can they switch you to a flat rate?

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Asked on December 7, 2016 under Employment Labor Law, Washington

Answers:

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

Answered 4 years ago | Contributor

Did you have an employment contract or union agreement that provides otherwise (i.e. that you must be paid hourly)? If not, then as an "at will" worker, your company can set the terms of employment much as it sees fit. This means that an hourly pay rate can be changed to a flat pay rate. Accordingly, you can either accept this change, complain or risk termination, or quit.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, unless you had a written employment contract specifying that you were paid on an hourly basis. If you had a contract, they have to honor it, and you could sue them for breach of contract if they don't. But if you don't have a written contract, you are an "employee at will" and your employer may change how you are paid--and also how much--at any time, without your consent.


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