Is the company required by law to continue my salary?

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Is the company required by law to continue my salary?

I was hired 5 months ago. However, approximately a month later, I was informed that the position that I was hired for had been terminated, company wide. I wanted to know if my company was required by law to continue paying me the salary that we both agreed on.

Asked on April 28, 2018 under Employment Labor Law, Texas

Answers:

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

Answered 3 years ago | Contributor

Did you have an employment contract or union agreement that provided for the continuance of your salary under the circumstances? If not, as an "at will" worker, your company could have ended your employment for any reason or no reason at all with an immediate termination of your pay. 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, they are not required to continue your salary. All employment is employment at will: an employer may terminate an employee, or change his or her job, or change his or her salary/wages, at any time, for any reason, without prior notice. The only exception would be if you had a written employment contract guarantying you work at a certain salary; if so, you could enforce the contract's terms in court, via a "breach of contract" lawsuit.


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