Legal Question in Business Law in Texas
changing rates of pay
After an employee has given 2 weeks notice, is it legal for the employer to lower the employee's rate of pay without notifying them?
1 Answer from Attorneys
Re: changing rates of pay
Unless there is a specific contract to the contrary, there is no requirement for a two-week notice. The payroll rate that was established prior to giving the notice will be presumed to be the agreed rate of pay until it is changed. An employer cannot unilaterally lower the pay rate after the work is performed. However, he can lower it before the work is performed, and the employee can quit or continue working at the revised rate. All of this assumes that the employment arrangement is an "employment at will" arrangement (which almost all are), and that there is no specific contract for a set term at any specific rate of pay, and that the employer otherwise is complying with applicable law regarding minimum wage and overtime pay, etc.
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