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Do companies have to retroactively pay you at your correct wage?

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fip

Junior Member
What is the name of your state (only U.S. law)? - Michigan



My question is regarding labor wages while working at American Axle & Manufacturing in the world headquarters division as a co-op. As it was, I was hired in at a sophomore level, being page at that sophomore wage. However, as time progressed, I became a junior and my wage was never changed to reflect that (which it should have). Now that I have been let go due to a slow down in work, they are telling me that they will not retroactively pay me at my correct wage for the full year that I should have been paid it. Their explanation behind doing so is that they said that "since it is the responsibility of the student to inform HR when his/her status changes, as such we do not pay retroactively if a student fails to inform HR of the status change." The thing that gets me however, is that in this message, they have stated that they adjusted my pay for the very last 2 week period that I worked. Now my question is, is there any legal action that I can take against such a company to be compensated for my missed wages? As it goes, I was never notified that I needed to change my status with HR by anyone in HR.

Thanks for all your help regarding this question.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? - Michigan



My question is regarding labor wages while working at American Axle & Manufacturing in the world headquarters division as a co-op. As it was, I was hired in at a sophomore level, being page at that sophomore wage. However, as time progressed, I became a junior and my wage was never changed to reflect that (which it should have). Now that I have been let go due to a slow down in work, they are telling me that they will not retroactively pay me at my correct wage for the full year that I should have been paid it. Their explanation behind doing so is that they said that "since it is the responsibility of the student to inform HR when his/her status changes, as such we do not pay retroactively if a student fails to inform HR of the status change." The thing that gets me however, is that in this message, they have stated that they adjusted my pay for the very last 2 week period that I worked. Now my question is, is there any legal action that I can take against such a company to be compensated for my missed wages? As it goes, I was never notified that I needed to change my status with HR by anyone in HR.

Thanks for all your help regarding this question.
Nope .
 

JETX

Senior Member
is there any legal action that I can take against such a company to be compensated for my missed wages?
Unless there is some kind of union agreement or published policy as to your being 'entitled' to a wage higher than minimum wage, they have no obligation to pay you more than what you had already agreed to.
 

itdepends

Member
What is the name of your state (only U.S. law)? - Michigan



My question is regarding labor wages while working at American Axle & Manufacturing in the world headquarters division as a co-op. As it was, I was hired in at a sophomore level, being page at that sophomore wage. However, as time progressed, I became a junior and my wage was never changed to reflect that (which it should have). Now that I have been let go due to a slow down in work, they are telling me that they will not retroactively pay me at my correct wage for the full year that I should have been paid it. Their explanation behind doing so is that they said that "since it is the responsibility of the student to inform HR when his/her status changes, as such we do not pay retroactively if a student fails to inform HR of the status change." The thing that gets me however, is that in this message, they have stated that they adjusted my pay for the very last 2 week period that I worked. Now my question is, is there any legal action that I can take against such a company to be compensated for my missed wages? As it goes, I was never notified that I needed to change my status with HR by anyone in HR.

Thanks for all your help regarding this question.
The reason retroactive changes are not generally allowed is that the other party doesn't have the opportunity to disagree with the proposed change. But if the other party wouldn't have had a choice, then that reasoning is moot.

I think your case depends on whether your employer would have had the choice to end the employment relationship rather than give you the raise, or if it would have had no choice but to give you the raise. If the latter is true, then sue in small claims.
 

fip

Junior Member
As far as I know there is no "union" for the position I was in. I was hired as a co-op, and with regards to whether they could've let me go or pay the raise, can't anyone be let go regardless? I now know that the raise was supposed to take place once they were made aware of my change in status (junior, etc) and is gauranteed to all those co-ops working there. I've also spoken to a co-op who was previously retro'd for a full semester of a change. My thinking is that now that I'm out of the company, they're just trying to push this off. I've asked for the employees handbook to be sent to my house to go over the fine print and see if there's anything meaningful to the subject to be taken from it.

PS: Thanks for all the replies.
 

eerelations

Senior Member
Whatever the employee handbook may say about this is not legally binding on your former employer.

As you've been advised, employers are legally obliged to pay minimum wage only. Anything else they may or may not do is completely up to the individual employer.
 

pattytx

Senior Member
As a co-op student employee, no union, if there had been a union you could choose to join, you would have know, believe me.
 

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