What do you do when an employer proposes a paycut?

UPDATED: Feb 22, 2012

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What do you do when an employer proposes a paycut?

I have worked here for a little over a year and had 2 raises last year. I had top sales last year. They changed my pricing structure for what I sell and sales have gone down, sales also for other departments have also gone down and now they want to give us a paycut and implement a watermark. I don’t want to take a paycut but I also don’t want to lose my job.

Asked on February 22, 2012 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately, a company does not have to propose a pay cut--it can simply enact one. The employer determines worker compensation; it may cut employee pay at will. The only exception would be if employees had an employment contract (or union agreement) setting forth pay; in that case, the employer must honor the contract. Otherwise, it may cut your pay.

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