Having your wages cut can be devastating as you rely on your paycheck to keep a roof over your head and care for your loved ones. When even a small portion of the money you rely on to pay your bills suddenly goes away, it can make it difficult for you to make ends meet. As such, you may wonder if your employer has the legal right to cut your wages. While pay cuts are unexpected, they can certainly occur under certain circumstances. Nevertheless, some conditions must be met for any reductions to be lawful. If you believe your wages have been unfairly reduced, please don’t hesitate to contact an experienced New York Wage & Hour Lawyer who can help protect your rights. Please continue reading to learn when an employer can legally reduce your pay in New York.
Can My Employer Reduce My Salary?
In New York, most employment is at will, meaning that both the employer and employee can terminate their relationship at any given time for generally any reason. Similarly, an employer is within their right to alter the terms of the employment agreement, including modifying an employee’s wages or salary. The Fair Labor Standards Act (FSLA) governs how and when employers can reduce an employee’s pay. The FLSA requires that all employees receive at least the federal minimum wage. As long as the reduction does not cause the employee to make less than the federal minimum wage, the employer is entitled to impose a wage reduction when necessary. The following include but are not limited to circumstances under which pay can be legally reduced:
- The business is struggling: When a business faces a greater economic recession, employers may find themselves in a situation where they have to cut their employee’s pay to stay in business. However, they must comply with the law in terms of giving notice and maintaining justifiable motivations.
- A change in job duties: If the nature of your job duties has been changed, an employer can adjust your pay rate per your new position.
When is it Illegal to Have Your Pay Reduced?
It is important to understand that an employer must pay you the agreed-upon salary for work that you have already completed. Even though an employer can make pay cuts when they are going through tough financial times, they cannot retroactively reduce your pay. Essentially, this means they cannot take money from current or future wages to pay past wages. At-will employers, on the other hand, are legally allowed to reduce your pay going forward for the time you have not worked.
In addition, while employers may reduce an employee’s pay in many circumstances, there are certain restrictions when there is a change in job duties. Regardless of whether you have been voluntarily or involuntarily demoted, employees under a contractual agreement that specifies pay and hours must pay the agreed-upon wages until the contract expires or is voided. Employers also cannot reduce an employee’s salary due to anger, relation, or in response to some protected activity.
If your salary or hourly wage has been reduced, it’s in your best interest to contact a determined New York wage and hour lawyer who can help you take the necessary legal steps to recuperate your lost pay. Connect with us today to learn more.
