Legal Question in Employment Law in New York

Re: Salary reduction

Assuming there is no collective bargaining agreement or any contractual obligations that would be impeded by a salary reduction an employer is free to reduce salary provided he does not do so to a level which falls below minimum wage. However an employee also is free to refuse the reduction and terminate his employment immediately and without notice should he choose to do so. The employer would be liable to pay all wages owed to the worker to the time of leaving his work at the old rate and the employee would be able to file for unemployment compensation based upon his old rate due to what would be construed as a constructive termination.

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