Need to Know

[Concerned777]

What is the name of your state?
Tennessee


I am wondering if there any circumstances where an employer may legally take away a pay raise from his employee. And if yes, what are they?? Thank you very much for you time...

 

[Katy W.]

Anytime he/she wants to, unless you have a contract or unless he is doing this for a discriminatory reason. Discriminatory meaning on the basis of age, sex, race, religion, creed, relion, pregnancy, disability...

 

[cbg]

Katy is essentially correct, though she missed a bit. Pay raises are not required by law, and pay reductions are not illegal. Barring a contract that specifies otherwise, an employer may reduce your wages or reverse a pay raise under most circumstances. It cannot be done for a discriminatory reason as Katy describes (although her list is not complete) and it cannot be done in retaliation for the employee having engaged in a protected activity. I would think there might be some question if it were being done to offset overtime pay. I can't think of any other reasons off the top of my head why reversing a pay raise would be illegal. Depending on your state law, the employer may have to give you a certain amount of notice before the reduction goes into effect, although to the best of my knowledge Tennessee does not have such a requirement.

That being said, I would hope an employer who would reverse a pay raise would have a business-related reason to do so.