Employers have the legal authority to decrease the amount of hourly pay for any employee as long as the employee is paid at least minimum wage, according to the U.S. Department of Labor. Employers are given a lot of leeway under labor laws to change specific wages during employment. In addition to pay, employers can legally reduce the number of hours worked.Know More
Individual states can also have similar wage rules in place. For example, the North Carolina Wage and Hour Act specifically states that employers must notify employees in writing at least 24 hours before a wage change is to take effect, according to the North Carolina Department of Labor. The law also states that employers are not allowed to reduce wages and benefits retroactively. Reductions can only be applied to future wages. However, under North Carolina rules, employers can take away all future wage benefits when notification is given.
An employee that disagrees with the wage reduction has no legal recourse to prevent the cut in pay, according to CBS News. An employee in this situation may not be seen as a valuable asset by the employer. The employee can either stay on the job and accept the lower wages or seek alternative employment.Learn more about Salaries
The state of Alabama has no set minimum wage. Because of this, the state uses the federal minimum wage of $7.25 per hour as of 2014. The tipped wage, or minimum hourly rate for those in positions that can accept tips, is $2.13 per hour.Full Answer >
The minimum wage in Colorado is $8.23 per hour, as of January 2015. For employees who are tipped, the state minimum wage is $5.21 per hour. These numbers both reflect a small bump up from 2014, when the minimum wage was $8 and for tipped employees $4.98.Full Answer >
Florida's minimum wage in 2014 was $7.93 per hour. Florida voters enacted an automatic annual minimum wage hike of 12 cents in 2004 that takes effect on January 1 of each year.Full Answer >
According to the United States Department of Labor, an employer may reduce the pay of any nonsalaried employee as long as the pay does not fall below minimum wage. An employer is also allowed to reduce the number of hours an employee is scheduled to work.Full Answer >