No one likes getting a pay cut. But your boss may insist that they are allowed to cut your pay because it is their business, and they have a right to do so. It is important that they still follow wage and hour laws, such as ensuring that they are paying you at least minimum wage, but they claim that they can reduce your pay from what you were originally offered.
On your end, however, it feels like wage theft. You believed you were going to be making more money when you took the job, and that has now been taken away from you.
As a general rule, your boss is correct that they have the right to reduce your wages, as long as they do so legally. But there are still ways that a pay cut could be illegal, depending on how it happens.
What is the reason for the pay cut?
For example, say that you recently reported sexual harassment on the job. You may then believe that the true reason for your pay cut is that it is a form of retaliation. That would be an illegal violation of your rights.
Similarly, your employer cannot cut your pay based on your religion, your race or other protected classes. If they are discriminating against you, that is illegal, even if they are otherwise allowed to reduce your pay rate.
When does it apply?
Another important thing to keep in mind is that pay cuts can only apply to any wages you will earn in the future. Your boss still has to pay you the higher rate for all of the hours you have already worked. If you put in the hours and then they try to go back and say they are going to pay you less than the agreed-upon rate, that is illegal. All they are allowed to do is tell you that future hours will be paid at the new, lower rate.
Issues like this can become complex, and it is important to understand your legal options if you believe you have experienced illegal wage and hour violations.
