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Employment Law/Pay Reduction


I have been employed with this company for 8 years.  Last May I was given my review and received a pay increase.  In December I was called into my boss's office to join him and his boss for a meeting.  I was then told I "made to much money" and that my hourly rate was being reduced $6.00 and hour.  I was told it had nothing to do with my job performance.  I was not given anything in writing it was all just verbal.  Is this legal?


Generally, employers are free to set the terms of employment how they choose as long as they are complying with applicable labor laws such as minimum wage and overtime, and are not violating an employment contract or engaging in unlawful discrimination (race, gender, national origin, age, etc.).

Although I do not know which state you are in, employment in most states is considered “at will” which means that absent a statute or an express agreement (such as an employment contract) to the contrary, either party in an employment relationship may modify any of the terms or conditions of employment (including such things at pay, schedules, personnel policies, etc.), or terminate the relationship altogether, for any reason, or no particular reason at all, with or without advance notice.

For further information specific to your situation, you may want to contact your state department of labor and/or the U.S. Department of Labor [1-866-4-USA-DOL /].  They should be able to address any other questions you may have.

While this may not be the answer you were hoping for, I do hope this is helpful in guiding you to a resolution of your questions.

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Michael Lore


I will take questions regarding employment law, with a focus on wage and hour issues involving overtime pay under the Fair Labor Standards Act (FLSA) and applicable state laws (eg. California).


I am an attorney with 15+ years experience in the area of labor and employment law, with a practice that concentrates heavily in the area of wage and hour litigation - involving unpaid overtime wages, commissions, work related expenses and vacation pay.

American Bar Association, American Association for Justice, National Employment Lawyers Association

BBA in Finance, J.D.

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