Is an employer allowed to take away extra benefits from an employee that were negotiated during the hiring process?

UPDATED: Jan 4, 2016

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Is an employer allowed to take away extra benefits from an employee that were negotiated during the hiring process?

The employee has been employed and receiving those benefits for 2 years.

Asked on January 4, 2016 under Employment Labor Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, the employer may do this unless the employee has not just an offer letter--which only describes what the pay, benefits, duties, etc. are at the time of hiring--but an actual written employment contract "locking in" the benefits. In the absence  of a written employment contract, all employment is employment at will; and one effect of employment at will is that an employer may change compensation, including benefits, at any time, and is not required to foreover compensate the employee the same way or provide the same benefits.

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