Is it lawful to change the rate of pay for a service without notice?

UPDATED: Oct 1, 2022

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Is it lawful to change the rate of pay for a service without notice?

My wife works at a daycare and has been
charged a reduced rate for our kids due
to that. After the daycare was sold to
another owner he told his employees that
the price would change starting
September 1. We have received a bill for
all 3 children at an increased rate for
the month of August. Also he changed her
rate of pay without notification. He
said it too would come later but it also
occurred without her knowledge prior to
his stated time

Asked on August 6, 2018 under Business Law, Idaho


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It cannot be changed retroactively--that is, for service already provided prior to you getting notice of the change; such a retroactive change would be a "breach of contract," or violation of the agreement, whether written or oral (unwritten) pursuant to which your wife worked there (partly) in exchange for the reduced rate. It may be changed without warning going forward--from the money you are notified of the change, the change is effective.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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