Q:

Can an Employer Ever Change Your Pay Rate?

A:

Quick Answer

There are situations where an employer can change your pay rate, including a decline in business. However, the pay rate cannot go below the Federal minimum wage.

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Full Answer

According to the United Stated Department of Wage and Hour Division, am employer must pay their employees the Federal minimum wage and any overtime that they are entitled to receive. However, the Fair Labor Standards Act does not stop an employer from reducing the rate of pay or the number of hours worked.

Pay reduction can happen for many reasons, such as a decline in business. It is also important to note that employees are required to be paid overtime if they work more than 40 hours in one week, even if there has been a pay reduction. It is also worth knowing that an employer cannot terminate an employee for discussing pay with other employees. It violates Federal law, but some states are right to work and don't require a reason for termination, so be careful.

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