In many cases, it is possible for your boss to reduce your pay rate, and there is nothing illegal about it. It is understandable that you would not be happy about this as an employee, but it’s probably not a violation of your rights unless there’s an employment contract stating how much you need to be paid, or if your hourly wage is reduced below the minimum wage.
However, even when your boss has the ability to reduce your pay, you don’t have a contract, and they’re still paying you above minimum wage, there are some situations in which it could be a violation of your rights. Let’s take a look at two examples.
You lose pay for hours you already worked
One issue is if the pay cut applies to hours that you have already logged and time that you have already worked. If you get hired and you put in 40 hours at $50 an hour, your boss can’t decide after the fact that they only want to pay you $20 an hour for that time. They can tell you that you’ll only earn $20 an hour in the future, but they still have to pay you $50 an hour for the work you already put in.
It is discrimination or retaliation
The second issue is if you’re being discriminated against or retaliated against. For example, maybe your boss is reducing your pay because you joined a new religion—a clear example of religious discrimination. Or maybe they’re cutting your pay because you filed a sexual harassment claim with HR. This type of retaliation is illegal because it is used to intimidate workers into not making reports.
If you believe that your rights have been violated, then it’s very important to know what steps to take moving forward.