QUESTION

Can my company reduce my pay based on a new organizational chart before the new chart goes into effect?

Asked on Feb 07th, 2014 on Labor and Employment - Illinois
More details to this question:
I was given a promotion to middle management three years ago mostly because a senior manager was not doing her job. The senior manager was forced out and I was told her replacement would be doing the extra duties that I had been given. In November I was told my pay would not be reduced, and that I would be given different duties. However, this was verbally and not in writing. We were shown the new organizational chart with my reduced supervisory duties and told it would go into effect March 1. This was during a meeting with many witnesses who heard this. I also work remotely and this week was told that from now on no employee can work remotely and I have to decide within a week if I will work out of the office or if they will find a replacement for me. Then was told my pay was being decreased effective immediately because of the change in duties. Is this legal? There is a lot more going on, but that is the basics.
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1 ANSWER

Employment Law Attorney serving Chicago, IL
Partner at Goldman & Ehrlich
4 Awards
Depending on the reasons why, an employer can decrease pay or change your duties prospectively. They can tell you starting next week this will be your new salary and duties.  They cannot do this rectroactively.  This all assumes there is a business reason for this. The employer cannot make these changes regardless of the timing, if the real reason is based on some type of illegal discrimination (age, race, etc.) or retaliation for certain protected activities you may have complained about.  If the decision to end your working remotely is being applied to all employees, this may be within their rights.  But, if you need to work remotely because of a disability, this may be illegal. You should speak to an attorney to review this case further.
Answered on Feb 10th, 2014 at 4:51 PM

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