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There are no Federal Laws, such as the Fair Labor Standards Act (FLSA), that prohibit an employer from decreasing an employee's wage rate, unless the reduction would result in the employee being paid less than minimum wage. As far as state laws are concerned, it is unlikely that they prohibit a reduction either so long as the resulting wage rate is not below the state's minimum wage. Some states do require an employer to notify an employee prior to reducing their wage rate. You would need to check with your specific state to determine its laws concerning wage reductions. An employer would be prohibited from reducing a wage rate if it would violate the terms of a employment contract or if it was motivated by a prohibited reason, such as age, race, sex, national origin, religion, disability, union activity, etc.

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15y ago
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15y ago

Yes, they pretty much can do as they want to...always the reasoning will be business needs. Your choice is to evaluate the cause of your demotion and determine whether you want to find another job or whether you can gracefully work yourself up the ladder where you are. I did have a job change on me like this and the terms were such that I quietly looked for another job--definitely took advantage of the remaining vacation and sick time I had available--while doing the best I could in the circumstances.

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11y ago

in the US, yes

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Q: When a person is demoted on the job do they get a reduction in pay?
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