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Below is a list of the most common customer questions. If you can’t find an answer to your question, please don’t hesitate to reach out to us.

Is it legal for a company to reduce your pay?

If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age). To be legal, a person's earnings after the pay cut must also be at least minimum wage.

Can a raise be taken away?

Employers can cancel a pay raise in most states without violating labor laws. If you are a member of a union, you may have some recourse, and circumstances regarding the revocation of your added compensation also may give you a foothold to file a complaint to regain your increase.

Can my boss take back my raise?

Your employer can give a raise and take it back, just as it can reduce/increase your hours, change your schedule, increase/decrease your pay, require you to work overtime (as long as it pays you), prohibit you from working overtime, etc.

Can a pay rise be taken away?

Although it is rare to retract the pay rise of an individual who has shared this information with their colleagues, it is possible to do so, under the right circumstances. Employers wishing to retract pay rises will need to have constructed their employee contracts accordingly.

Can a pay rise be taken away UK?

While it's not illegal, you need to have a good reason to revoke a pay rise.

Can your pay be docked as punishment?

According to U.S. News and World Report, it is illegal for an employer to deny or adjust compensation retroactively as punishment for poor performance -- or for any reason at all. Since an employee entered into an agreement to exchange labor for fixed compensation, the employer does not have the right to dock her pay.

Can you reduce an employees hours?

Can your employer reduce your hours, or lay you off? The short answer is only if your contract of employment allows it. Your employer can only lay you off or require you to go on reduced hours if your contract of employment allows it. If not, your employer will have to negotiate a change to your contract.

How much notice does an employer have to give to reduce working hours?

Advance Notice According to WARN regulations, employees have the right know -- at least 60 days in advance -- that their employer intends to cut their hours. WARN regulations apply to employers who slash hours by more than 50 percent.
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