QUESTION
Can an employer reduce your salary just becasue they feel you are paid too much?
Asked on May 20th, 2014 on Employment Contracts - Pennsylvania
More details to this question:
I have received two awards for meeting goals and doing a good job. I have not been written up, given any warnings, failed to do something etc....My salary was reduced by $10,000 because they feel I 'm paid too much. I've worked for this company for 15 years and have earned every raise I recieved. I have not recieved a raise in 3 years becasue our company is struggling, that's ok but not they have reduced my salary. I was also forced to sign a non compete years ago which now prevents me from quiting and working at another business similar to this. Can they do this?
1 ANSWER
The fact that you are being asked to take a salary cut may affect the enforceability of your non-compete if you decide to quit instead, but unless you have a contract (it can be a collective bargaining agreement or possibly arise from an employee manual) which provides for a definite salary for a definite term (i.e. employer will be paid $80,000 annually for the next two years), or you are being discriminated against by being forced to take a cut others are not based on reasons prohibited by statute (i.e. you are being treated differently because of your race, religion, gender, etc.), your employer has the right to cut your salary, and your only recourse is to quit if you don't want to accept the cut.
Answered on May 20th, 2014 at 3:09 PM