Published on April 6th, 2010 by Alan L Sklover
Question: My boyfriend was laid off in June, 2009, and his company just called him back, but at a reduced salary.
He was making $19.00 per hour when he was laid off, and they are now asking him to come back but with a pay cut down to $15.50 per hour. That’s a decrease of over 18%, and our expenses have not gone down a penny.
Can an employer do this?
Answer: Lizan, there are many, many laws that regulate the employment relation, such as minimum wage laws, anti-discrimination laws, and workers’ compensation laws. But I have never heard of a law that prohibits what your boyfriend’s employer is doing.
Unless your boyfriend has either a personal employment contract, or a union contract with his employer, that says salary can’t be reduced, the employer can do what it is doing. Your boyfriend is free not to accept a paycut and look for employment elsewhere, although I’m sure finding another job elsewhere would be difficult.
If and when the economy gets better, or your boyfriend develops a skill that the employer feels it really, really needs, your boyfriend may ask to renegotiate. I hope that each of those things happens.
Hope that helps.
Best, Al Sklover
© 2010 Alan L. Sklover, All Rights Reserved.