Can my employer reduce my pay without reducing my hours?
James Olson
Updated on April 04, 2026
When Can a Company Reduce Pay? Your employer doesn’t need a reason to cut your pay or reduce the hours you are scheduled to work. Unfortunately, employers can, in most cases, cut your pay or reduce your hours since most employees are “hired at will.”
What do I do if my employer cuts my hours?
- Unless you have an employment contract or bargaining agreement to protect you, your employer can reduce your work schedule at any time.
- Try negotiating you contract to freelance on the side, find a new job or ask for better benefits to make up for the lost hours.
What happens if my employer cut my hours and pay?
Understandably, a reduction in pay or working hours could leave an employee with no other choice other than to terminate their employment. Under these circumstances, the actions of the employer could amount to a fundamental breach of the employment contract and could lead to a successful claim of constructive dismissal.
Can a non exempt employee get a pay cut?
If you pay a non-exempt employee a salary, you may adjust the employee’s salary or hours so long as his or her effective hourly rate does not fall below the federal, state, or local minimum wage, whichever is highest. 2) May an employer reduce the predetermined salary amount or hours of a salaried exempt employee?
Can a union negotiate a pay cut for an employee?
Yes. Reductions in an employee’s compensation or hours generally must be negotiated with the union that represents the employee, unless the collective bargaining agreement gives the employer the right to make such reductions. 5) How should an employer determine which employees will receive a cut in hours or pay? Carefully.
Can a company cut your pay at will?
Unfortunately, employers can, in most cases, cut your pay or reduce your hours since most employees are “hired at will.”. Employment at will means that when workers don’t have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, and have hours reduced or pay lowered at the company’s discretion.