Legal Question in Business Law in New Hampshire
Company wide revoking of pay raises
Last year the company I worked for constituted a new corporate wide once a year review/raise system. This year (September) all raises went into effect. Everyone had received 3 weeks worth. This week, the company performed a reduction in work force due to recent events etc. They also proceeded to take back the raises that everyone had received for the last three weeks.
NOTE: Corporate headquarters are based in Massechusets.
1 Answer from Attorneys
Re: Company wide revoking of pay raises
The question was posted as a joint CA-NH question and as I am a California lawyer this answer applies only if the employee(s) in question are earning the questioned wages for work in California.
The general rule is that if the pay rate is $20 an hour when the work is done, you have to be paid $20. In other words, the rate of pay cannot be reduced for services already performed between the time the worker does the work and the time the paycheck is cut.
On the other hand, absent a union agreement or some other kind of employment contract, the employer is free to reduce pay for future work, subject to certain limitations such as the minimum wage laws and other laws and regulations applicable to particular industries, occupations or classes of employee.
Related Questions & Answers
-
Barred from a public establishment I was barred from a local public bar and... Asked 8/10/99, 3:02 pm in United States New Hampshire Business Law
-
When can you use "patent pending" Is it legal to put "patent... Asked 4/24/98, 6:04 pm in United States New Hampshire Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
