In and of itself, a pay cut is not inherently illegal. Workers do sometimes find out that their wages are going to be reduced. Their employers certainly may have the authority to make this reduction.
But there are ways that a pay cut could become illegal. This can often cause wage and hour disputes.
For example, if your employer announces that they are cutting your pay retroactively, meaning you will be paid less than you thought for hours you already worked, doing so is illegal. All your employer has the right to do is inform you of a pay change that applies to the future. You are not obligated to continue working at the lower wage, so you have to agree to the pay reduction, and you must be informed of it in advance.
What is the reason for the pay reduction?
You may also find yourself wondering why your pay is being reduced. If the reason for the reduction is itself illegal, that could also be problematic.
For instance, perhaps you have been experiencing racial discrimination on the job. You came to your employer with a report of the discrimination or harassment you faced. In response, your employer told you that your pay was going to be cut or your hours were going to be reduced.
In a situation like that, you could argue that your pay cut is a form of illegal retaliation for bringing forward a valid claim of discrimination on the job.
Understanding your legal options
Situations like this can become complicated, whether you are dealing with discrimination claims, wage and hour disputes or both simultaneously. Make sure you know exactly what legal options you have.
