Can a company cut your pay?

Can a company cut your pay?
You may be wondering if it is legal for your employer to reduce your pay or your hours. I think the answer to this question will surprise you.
Did you know that in the US you can be legally fired for any reason at any time? In fact, the employer does not even need a reason to fire you.
In most of the United States, employment is at-will which means the employer can terminate any employee at any time and for any reason.
Companies may cut pay or hours for a variety of reasons. Perhaps they are trying to avoid layoffs. However, they may actively be trying to get employees to quit so they do not have to pay unemployment benefits.
While you think your employment contract protects you from your employer decreasing your pay, the truth is that you most likely did not even sign a contract. Rather, you probably just signed an offer letter. Usually, when a company offers a salary and benefits, this constitutes an offer rather than a contract. Companies often try to avoid making binding promises to employees. While they may hire you at a certain salary or wage, there is no commitment to keep you at that rate. However, the law does require an employer to inform you if they are going to cut your pay. Workers with collective bargaining agreements are shielded from pay cuts, but you would likely need to be involved in a labor union for this to pertain to you. Another way for you to be shielded from pay cuts is if you have a written employment contract, but this is unlikely unless you are highly compensated or work in management, perhaps as an executive.
Another alternative for a company looking to reduce an employees pay is to just fire and rehire them at a lower rate.
The only real rule when it comes to compensation is that they cannot retroactively reduce your pay. What you earned in the past, is yours to keep but going forward, your pay can be cut.
In some states, if your compensation is reduced and you quit, this may constitute ground for receiving employment benefits. However, you should do your research. Every state is different. Some states make it very difficult to collect unemployment benefits. Also, as I have experienced first hand, employers may lie to the unemployment office or misrepresent material facts to try and invalidate your unemployment benefit claim.
Unfortunately, if your company reduces your pay, you do not have much recourse. Most of the time, when a company is doing something you disagree with, your only options are to either deal with it or to quit. If you are unhappy with how you are treated at work, I would suggest you update your resume and start applying for other jobs. Many people stay at low paying job or toxic workplaces too long when they could go out into the job market and find something much better. I think you will find that there are many opportunities out there just waiting for you. Try and be optimistic, and why not apply to a few jobs this week and see where those applications lead you?
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Works Cited:
https://swartz-legal.com/can-an-employer-legally-reduce-your-pay/