Legal Question in Business Law in New Jersey

The employer can decrease the hourly rate paid to an employee, provided the employer pays at least the minimum wage in New Jersey. However, notice must be given before the start of the workday in which the change will take effect. In other words, your employer can tell you - just before you start work tomorrow - that your wage will be reduced effective immediately. However, your employer cannot reduce the amount to be paid you for all work you have already performed.

To what Mr. Brett has said I will add that a reduction in rate could constutute a breach of contact if there is a contract in place. Even if there is not, asubstantial reduction in the hourly rate can be regarded as a constructive discharge. Thus, if the employee resigns rather than agree to the rate reduction, it is arguable that the employee will still qualify for unemployment benefits. The problem is that this is risky and usually warranted only where the reduction is significant because, if the tactic fails, the separation will be treated as being voluntary. � See also: http://info.corbettlaw.net/lawguru.htm

The attorney answers above are right on point. This is an area of the law where a number of factors (employment agreement, etc.) need to be analyzed. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney