Legal Question in Business Law in New Jersey

salary decrease

is it legal for a company in nj to decrease a weekly salary?


Asked on 3/09/05, 9:53 am

2 Answers from Attorneys

John Corbett Corbett Law Firm LLC

Re: salary decrease

Yes.

If there is a written contract, a court will enforce that contract to the extent of the damages. That would be the difference between the contract compensation and the actual compensation. In some cases, it might also include other damages such as the cost of moving to a new location.

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Answered on 3/10/05, 1:38 am

Re: salary decrease

Maube. Much will depend on the contract, if any, an employee is working under. The contract will be enforced by the courts, however, NJ is an employment at will state, and absent a contract, an employee has few, if any, real rights beyond those few enumerated by the legislature. However, if an employees wages are changed, they may qualify as having been constructively fired (substantial change in working conditions) and be eligible to leave the employer and qualify for unemployment. If you are an employer, you should consider what it will cost you in terms of unemployment contributions; if you are an employee, you should consider how substantial the change is and whether you will qualify for unemployment insurance (check with the state) before making a decision to leave.

In any event, I recommend that you discuss the particulars of your case with an attorney in your area.

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Answered on 3/10/05, 10:20 am


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