CHARLOTTE, N.C. — Let's say you are hired to work at a fast food restaurant for $15 an hour, and then without asking you, the employer changes your hourly rate. Now you make $11 an hour. But is this legal?
THE QUESTION
Can an employer change a worker's hourly wage without the employee's permission?
SOURCES
- Attorney Josh Van Kampen with Van Kampen Law
- The North Carolina Department of Labor
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THE ANSWER
"Most people are really disappointed to learn that their employer can reduce their pay after they're hired," Van Kampen said.
WHAT WE FOUND
According to the Department of Labor, an employer can change its wage agreement with an employee at any time, regardless of what the original wage was and without the employee's permission. However, there are certain requirements the employer must follow, to stay within the law…
"Employers in North Carolina are obligated to identify in writing to workers what their pay is when they're hired," Kampen said. "However, once an employee has begun work, the employer has the ability to change the terms of their compensation plan. but they have to provide advanced written notification that they are changing the compensation."
But employees do have some safeguards.
"There is a backstop, which is that the wage has to at least meet minimum wage and the employer also, for hourly workers still has to pay time and a half for hours over 40," Kampen said.
So what can you do as an employee if your wages are reduced, against your wishes? Kampen said not much.
"If the employer has provided the written notification in advance, there really isn't anything that the employee can do unless that reduction in pay has been made for discriminatory reasons," he said.
Kampen said if your wages are reduced it might be smart to talk to your coworkers to find out if they were also affected.
"f your pay is reduced, if it were me, I wouldn't hesitate to ask my co-workers if the if it happened to them as well." he said.
That can give you insight into whether the pay cut was across the board or whether your boss singled you out.
So yes, an employer can change its wage agreement with an employee but they have to provide written notice, beforehand.
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