QUESTION
Can an employer drop a pay rate without any prior notification?
Asked on Oct 02nd, 2015 on Employment Contracts - North Carolina
More details to this question:
My husband signed an agreement to transfer from Florida to South Carolina with his employer beginning in January 2011. His salary was to start at 40.00/hr and per the agreement all previous negotiations were superseded by that signed agreement. As that project wrapped up he was then transferred to North Carolina in June 2011; however, no agreement was drawn up and a wage change was not discussed. Fast forward to September 2011 and all the sudden his wage per hour is dropped to 27.00/hr without any discussion of such or prior notification. The decrease was brought up at the time and again in 2013, but ceased as it escalated to a point that my husband feared for his job. He is no longer employed there, but we have had to revisit the issue due to hardships we are facing now with our mortgage. His old employer is claiming that the wages were temporary/project-specific despite the signed agreement between them. We want to know if this agreement has any standing and what we can do.
1 ANSWER
4 Awards
Yes, the employer can change the pay at any time. However, the employer must give the employee notice at least 1 pay period prior to the change under North Carolina law. If it does not do so, then the employer is probably liable for the difference in promised or agreed wage and the lowered wage for one pay period. In other words, $13.00 per hour for one pay period.
As for the agreement, it is possible that it is an enforceable contract but it would be subject to interpretation of the terms and to several defenses including waiver and possibly the statute of limitations. Best thing is to have an attorney review the agreement.
Answered on Oct 03rd, 2015 at 9:32 AM
I am an experienced attorney focusing on employment law in North Carolina and Tennessee. This post/response is not meant to constitute legal advice.