Decrease in pay without knowing pay rate

My husband and the employees at his company were all informed by their owner last Friday 9/25 by letters mailed to each person's home that that was the last day that each person would be on their current pay rate/salary. That effective 9/28 everyone would have a decrease in pay/salary. In the letter from the owner of their company, he stated that no one was to approach him to question their new pay rates he would inform each of them when he figure it out. As of today, a little over a week later, no one has been informed of their new pay rate/salary. My husband, not to mention many others, have been working well over a week without knowing what they are making. Is this legal?

1 answer  |  asked Oct 5, 2009 09:29 AM [EST]  |  applies to Ohio

Answers (1)

Bruce Elfvin
While the actions of the employer here are a little on the erratic side, the cut in pay will not be illegal unless it violates minimum wage laws or a union contract. In general, unless someone has a contract they will be considered an at-will employee and their rate of pay or continued employment can be changed at any time for any reason. It is not the normal way to do this, but from what you have described so far it is not illegal.

You can certainly consult an attorney and select one near you at www.oelasmart.net/directory

posted by Bruce Elfvin  |  Oct 7, 2009 08:38 AM [EST]

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