EMPLOYMENT

Can my employer cut my pay?

SHORT ANSWER

Often yes going forward, but not retroactively. In most at-will jobs an employer can lower your pay for future work if it tells you first and you keep working. What it can’t do is cut pay for hours you’ve already worked, drop you below minimum wage, or reduce pay for an illegal reason.

Pay cuts are legal more often than people expect, but with real limits. In an at-will relationship, an employer can generally change your future pay rate as long as it gives notice before you work at the new rate — continuing to work is treated as accepting it. The hard lines are that your pay for hours already worked cannot be reduced, your rate cannot fall below the applicable minimum wage, and a cut cannot be retaliation or discrimination. A contract or union agreement can also override the at-will default.

What to do, in order

  1. Confirm the cut applies only to future work — past hours must be paid at the agreed rate.
  2. Check that your new rate still meets federal, state, and local minimum wage.
  3. Look for a contract, offer letter, or union agreement that limits pay changes.
  4. Ask for the change in writing so the effective date is clear.
  5. If the cut targets you after a complaint or based on a protected trait, document it — that may be illegal.

Common questions

Can they cut pay without telling me?

No. A pay cut must be prospective and disclosed before you work at the lower rate. Reducing pay for work already done is generally illegal.

Can they lower my pay below minimum wage?

No. Your rate must always meet the highest applicable minimum wage — federal, state, or local.

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Authoritative sources

Primary government sources. This page summarizes them in plain language; the linked pages are the authority.
This is general information, not legal, tax, or financial advice, and it doesn’t create a professional relationship. Rules have exceptions and change over time. For advice on your specific situation, consult a licensed professional.