Legal Question in Business Law in New Jersey

Pay Rate changed with no notification

Recently I had my pay rate reduced by 10%, due to a performance review that the store manager completed that I never received. I was not informed of the outcome of this review, this is the first year the company is reducing the pay based on the review and was not notified that my pay was going to be reduced until I picked up my paycheck and found that my pay rate was reduced, so at that point I had worked for a three week period under that pay rate. I feel that this is unethical and would like to know what possible options I have. Regardless of the results of the review (yes I do disagree with my score but that itself is not a legal issues) I feel I should have been notified of a pay reduction at least two weeks prior to the reductions going into effect so that I could give two weeks notice and leave on good terms or at the bare minimum at least before the first day I would be working under that new pay rate.


Asked on 4/17/09, 12:55 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: Pay Rate changed with no notification

You are correct. Even without a written contract in an employment at will situation, there is an implied contract at issue here. If the company allows you to work knowing that you expect to be paid at at a certain rate, they cannot change that rate retroactively. If you don't get satisfaction from the company, file a wage claim with the Department of Labor.

See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 4/17/09, 3:38 pm


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