Reduction in Wages?

[lindareilly]

have a question....and as a matter of information, I live in the state of Pennsylvania. Can an employer reduce your hourly wages? For example, you are making $20.00 per hour and your boss comes to you and tells you that as of now he can only afford to pay you $17.00 per hour? This is done simply because he says business is down. Oh and by the way.......other people have gotten increases and you've been with the company for over 10 years. Is this legal? Do we have any rights? Please any information would be greatly appreciated. Is it worth consulting a lawyer. Thank you so much!!!

 

[presutin]

It is legal for the employer to grant raises and to lower salaries. You can tell your boss that you are not happy with the salary reduction due to how it will affect your lifestyle but there is not much you can do... Good luck!

 

[cbg]

Yes, it is legal to reduce wages unless you have a bona fide contract or CBA that specifically says otherwise.

Under the law, you are due the higher of state or Federal minimum wage. As long as you are receiving that or more, the employer is legal.

In most (but not all) states, you must be given advance notice of the decrease before you work any hours at the lower rate, but the reduction itself is legal.