Can wages be "varied by management"?

[Dan C]

Jurisdiction

Illinois

Good evening. My son got an internship offer that states "your wages will be $xx.xx unless varied by management". I was baffled. Is this the newest thing in labor law?

 

[adjusterjack]

Nothing new. Nothing illegal. As long as your son is paid at least minimum wage, management can change the amounts at any time going forward.

 

[army judge]

My son got an internship offer that states "your wages will be $xx.xx unless varied by management". I was baffled. Is this the newest thing in labor law?

I don't know enough about your relative's issue, nor do I wish to know more.

It might be a good idea for your relative to speak to someone in HR or Payroll if HE has any concerns regarding wages or salary.

 

[Tax Counsel]

Good evening. My son got an internship offer that states "your wages will be $xx.xx unless varied by management". I was baffled. Is this the newest thing in labor law?

No. The employer is just stating something explicitly that has always been the law. Most employment in the US is "at will" meaning that the employment can be terminated at any time by either employee or employer (though the law limits to some extent the reasons for which the employer may terminate the employee). Thus, with most jobs in most states the employer can come to an employee before starting work on Monday and say "I'm lowering your pay by $1 hour starting today" and so long as that reduction does not take the employee below minimum wage there is nothing illegal about the pay change. The employee is free, of course, to reject the reduction and refuse to work at the lower rate, but because employment is at will, the employer can simply fire the employee if the employee rejects the reduction. That's been pretty much how employment has worked in the US for over 200 years. A few states, as I recall, do require some kind of minimal advance notice of a pay change (e.g. a couple days) but no state prevents an employer from reducing pay for future work to be done. What an employer cannot do is change the pay AFTER the work is already done.

 

[cbg]

In the OP's state, notice of a change in wages must be before any hours are worked at the new rate (though there is no specific advance notice required) and it must be in writing unless extraordinary circumstances prevent it. In that case, the written notice must be provided as soon as is reasonably possible.

 

[zddoodah]

Is this the newest thing in labor law?

No.

Everyone who is not a member of a labor union or does not have an employment contract that specifies wages/salary to be paid is subject to having his/her wages changed -- upwards or downwards (as long as the employee is making at least minimum wage).

Did you suppose that your son's rate of pay would be locked in for the rest of his life?

 

[Dan C]

No.

Everyone who is not a member of a labor union or does not have an employment contract that specifies wages/salary to be paid is subject to having his/her wages changed -- upwards or downwards (as long as the employee is making at least minimum wage).

Did you suppose that your son's rate of pay would be locked in for the rest of his life?

The issue wasn't as much that employment at will allows the management to change the terms as putting it in the offer letter in a way that can spook someone inexperienced. By the same token, it could say, "Your start date will be mm/dd/yyyy unless, before that date, we decide to fire you, cancel our internship program, our company goes bankrupt or a global conflict breaks out". All of those are possible scenarios, but I've never seen any of that explicitly put in the offer. Anyway, the issue has been resolved, so thanks to all who responded.