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Posted Feb 6th, 2012
Do employers have the right to reduce an employees wages without verbal or written notice?

Additional Details:
My employer uses paperless accounting for wage payments in that the employees must have direct
deposit of their pay checks into a bank account. In order to obtain a wage statement of taxes paid,
garnishments, ect. we must use the internet or ask for a print-out of our pay receipts. Most of us
do not have a computer and consequently no direct access to the internet. We have low wages ( less
than $10/ hr. ) and can''t afford such luxuries in lew of paying bills. We have trust in our
employer, however, I have recently gained access to the internet through a friend and checked on my
wage statement and discovered that prior to December of 2011 I was earning what my employer and I
agreed upon but then noticed that my wages were reduced since December 2011. I did not notice the
reduction because our hours of work have been fluctuating since December 2011 until recently when I
worked a full 40 hour week and did not receive what was the usual 40 hour payment to my account.
Legal Topic Area: Business Law in PA

As a general matter, an employer may fire, or reduce compensation, at will and without prior notice. While there is no particular requirement that an employer advise you of a reduction in compensation, if you and your employer have an understanding regarding your compensation, and your employer doesn't advise you of a reduction, and you continue to render your services, you have the right to assume that your compensation is continuing in accordance with your agreement. Thus, the reduction may be simply an actionable breach of contract. At some point, your acceptance of payment without objection will constitute agreement with your employer's compensation terms. This is not legal advice and you need to consult with your own attorney regarding these kinds of rights and your remedies.


Answered on Feb 6th, 2012 at 12:44pm