Legal Question in Employment Law in Florida

Forced pay cut despite contract

Four months ago I accepted a promotion within my company by signing an offer letter (which states the new salary and benefits) that was issued to me by my company's corporate human resources office. It took my company 9 weeks from the effective date of the promotion to process my new pay rate. A few weeks after it was finally processed, I filled out the proper paperwork to recieve the retro pay that I was owed. When I presented this to my district manager (the form required their signature), the request for retro pay was denied. I was told my new position was not budgeted for my new salary and had to take a $5500 pay cut!! This is 3-1/2 months after I signed and accepted the promotion and raise.

Also, while I was awaiting my raise to be processed, I was in the process of buying a new house. The corporation's human resources office sent a letter to the mortgage company confirming my new rate of pay and the amount of retro-pay that I was owed (because I had no recent paystubs showing my new salary)

Can they force me to take this pay cut? Can they fire me or demote me if I refuse to take it? I'm at a loss. I don't know what to do. Please help.


Asked on 9/14/03, 6:56 pm

1 Answer from Attorneys
Keith Stern Shavitz Law Group

Re: Forced pay cut despite contract

First, it is important that you understand that you likely did not have an enforceable employment contract. You state in your overview that you signed an offer letter. However, under Florida law, to have an enforceable employment contract, you must have a written document that, among other things, specifies the term of employment--i.e, from January 1 to December 31, or, for a period of 3 years, etc. As such, unless you have such a document bearing your signature as well as a binding signature of your employer, then under Florida law you are considered an at-will employee. As an at-will employee, your employer can change your rate of pay, demote you, fire you, etc.--for any reason at any time. The only potential saving grace may be that you performed work for a period of time under the agreed upon rate of compensation, which your employer cannot reduce retroactively. To give you more specific advice, I would need to review your documents and learn some more facts, so if you'd like further assistance, please contact me at (305) 755-9441.

Read more
Answered on 9/14/03, 7:07 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in Florida