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  1. #1
    Join Date
    Jul 2009

    Question 10% Pay Cut Retroactive,

    What is the name of your state (only U.S. law)? AZ

    My employer is proposing a 10% across-the-board pay cut for all employees - exempt and non-exempt, retroactive to the first of the month (July). We are paid twice a month, on the 15th and the end of the month, on a delayed basis (1st -15th paid at the end of the month, 16th - 31st paid on the following 15th). Our employees are all paid well above minimum wage, so it will not affect any FLSA minimum limits for the exempt employees to remain exempt, nor will it reduce any of the non-exempt employees below Minimum Wage. One twist to this reduction is that the employer will increase our vacation balances by the same amount of our reduction in pay - in essence, just deferring payment of the 10% to a later time when we take vacation. My question is whether it is legal in Arizona to make this effective retroactively, as long as they have not yet been paid for it?

  2. #2
    Join Date
    Oct 2004
    small town, PA
    Nope, it cannot be retroactive. However, neither is a specific amount of notice required in Arizona, that I could find. That means they could tell you as you're washing your coffee cup tonight that tomorrow you start making XX less and that would be legal.

    You have not won the law suit lottery; in fact, you haven't even won the law suit scratch-off.
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