In many cases, an employer can legally reduce an employee’s pay. The employee may understandably feel frustrated by this change. They may have expected to be paid a higher rate and perhaps only accepted the job because of the original compensation. A pay reduction can be very detrimental to their personal life. However, this doesn’t necessarily make it illegal.
That said, there are situations where a pay reduction could violate an employee’s rights. It’s important for workers to understand when this happens. Two examples are listed below:
1. It applies retroactively
First, an employer cannot reduce pay retroactively to apply to hours the employee has already worked. Employees are entitled to the higher wages they believed they were earning when they worked those hours.
A pay reduction can apply to future hours. If the employee does not want to work at the lower rate, they have the right to leave their position. Employers cannot force them to work for a lower rate than they are willing to accept.
2. It is discrimination or retaliation
A pay reduction may also be illegal if it is discriminatory in nature. For instance, if an employer reduces the pay of all female workers while raising the pay of all male workers, this constitutes clear gender discrimination. Gender is a protected class, so such actions violate workers’ rights.
Additionally, a pay reduction cannot be retaliation for lawful actions taken by the employee. For example, if an employee reported sexual harassment or unsafe working conditions, reducing their pay could be seen as retaliation meant to intimidate them or discourage further complaints.
If you believe your employer has violated your rights, be sure to understand the legal steps you can take.