A pay reduction or a pay cut can be carried out legally by your employer. This is especially true if you are an at-will employee, so you do not have an employment contract stating how much you must be paid for your time. Since you are at-will, your employer can change your pay rate, and you always have the option to walk away from the job if you do not agree to the new rate.
That said, there are a few different ways in which pay cuts could be an illegal violation of your rights. Let’s take a look at three examples.
It is retaliatory
First of all, your pay cannot be cut in a retaliatory manner. Say that you report sexual harassment on the job. Your boss ignores the report but cuts your pay. This could be a form of retaliation to keep you from speaking up about the harassment you are experiencing, and it is thus a violation of your rights.
It is retroactive
Additionally, your pay cut must only apply to work that you will do in the future. It cannot be a retroactive cut for hours that you have already put on the books. If your boss tells you on Friday that your pay rate is going to be lower on Monday, that is likely legal. But if they tell you that you are going to be paid less than expected for the last week of work, that is illegal.
It is discriminatory
Additionally, you may need to consider the reason for the pay cut and whether it could be seen as discrimination. If your boss cuts the pay of all female workers, but not male workers, for example, it may be gender discrimination.
If you find yourself in a situation where you believe that your rights have been violated due to a pay cut, be sure you know what legal steps you can take.