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Apr09

can i cut my employees hourly pay?

Is it legal to cut my hourly employees pay from
$14 / hr to $11 / hr? What kind of notice do I need to give them?

This is legal as long as you are in a state where the state minimum wage is less than $11. An employer can reduce an employees rate of pay, as long as the employee is informed of this reduction before they perform the work.

The best practice in HR is to inform employees one full pay period in advance that their wages will be reduced. In other words, when you give out paychecks this Friday, you would inform employees that in two weeks, they will start earning $11 per hour. A few states require more notice.

It is illegal to make a wage reduction retroactive. In other words, you cannot inform employees this Friday that for the past two weeks they have been earning $11 per hour instead of $14 per hour.

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This entry was posted on Friday, April 9th, 2010 at 8:52 am and is filed under
Compensation, Human Resources Management.
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