Interesting. Ordinarily, an employer can determine your compensation unilaterally and increase or reduce your pay as they see fit. However, if in this case, if they fraudulently induced you to turn down the other job offer based on a "pay increase" that they never intended on giving you, you may have a cause of action for fraud and/or fraudulent inducement. You should contact an attorney to discuss your options. This conduct by your employer is wrong and should be addressed immediately.
Answered on Mar 11th, 2014 at 11:20 PM