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Hours and Pay In general, as a business owner you can cut employee pay or hours to whatever you think is necessary. You cross the line if you cut pay so much an employee is working for less than minimum wage. Up to that point you can cut pay freely. The law allows you to cut hours as low as you choose.
Hours and Pay In general, as a business owner you can cut employee pay or hours to whatever you think is necessary. You cross the line if you cut pay so much an employee is working for less than minimum wage. Up to that point you can cut pay freely. The law allows you to cut hours as low as you choose.
If you are a nonexempt employee, your employer is legally allowed to cut your hours. Even though a reduction in hours is legal, your employer still must pay you for every hour you actually work. As an hourly worker, you are entitled to compensation for every hour you work period.
Turns out, you CAN now be sued for simply reducing an employee's hours. Here's the deal: If an employee can show that your intent in reducing his or her hours was to deny the person access to some benefit or right he or she would've otherwise been entitled to, you can be sued.
Why do employers cut hours? Employers cut hours for a variety of reasons. This may be because the job role you fulfill is no longer necessary as a full-time position, or it could be because they need to budget better and, therefore, they need to reduce some employees' hours.
Reducing working hours and the law You can make reductions in working hours according to employment law. Depending on the contract, they can be permanent or temporary reductions in working hours. However, you can't do this without the consent of your staff members. One change involves reducing their hours of work.
If you're an employee who isn't protected by a bargaining agreement or employment contract, there is no set amount that you have to be paid. However, employers cannot reduce wages to a level which is lower than the minimum wage in their state. The federal minimum is $7.25 per hour.
Legal Protections for Workers A pay cut cannot be enacted without the employee being notified. If an employer cuts an employee's pay without telling him, it is considered a breach of contract. In those situations, an employer cannot arbitrarily cut your pay or change your hours.
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