Legal Question in Employment Law in Texas

Hello,

My wife is a teacher for a school district in Texas. She has worked at this particular school for 5-6 years and is currently the head of her grade level. She has extremely high marks and has all positive evaluations. We recently had our first child and she is on FMLA leave, unpaid of course. The school has constantly contacted her regarding work (grading papers, report cards, etc.) while upaid. This evening, the she was contacted by the Principal letting her know that she will be moved to a lower grade level upon her return. Needless to say, she is distraught as she has been teaching the same grade leve her whole career. In my opinion it is an implied demotion because she will not be the head of first grade and although not discussed, there will most likely be a pay decrease because she currently receives more pay for being the "Team Leader" of 2nd grade. The reasons for the demotion according to the Principal:

1. While on leave, her kids are not performing well on their grades and they need someone to fill that position because my wife is unavailable (i.e., the substitute teacher isn't reaching the kids)

2. My wife will "have more time for the newborn", according to her Principal.

Is this a violation of the law? TX is an "at-will" state.

Thanks.

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