can a privately owned company implement pay cuts without employee agreement to take the pay cut?

Unless the employees have a contract for a specific period of time, they are likely "at-will," meaning the employer can terminate the employment at any time. If the employer can terminate employment at any time, it can also terminate the rate of pay and offer continued employment at the new and lower rate of pay. In that case the employee has the right not to continue working. However, as long as the employer pays the employees at the old rate for all hours worked up to the point of switching to the lower rate, the employer is within its rights to switch to a lower rate.

Time to find a new employer, or else a union. Under a collective bargaining agreement, employers cannot reduce wages unilaterally.

posted by Neil Klingshirn  |  Dec 9, 2019 11:54 AM [EST]