Pay changed due to company mistake

[tbez]

What is the name of your state? Ohio
My son recently got an entry level job with a major employer in the area. They actually lured him to a job different than the one he had applied for on the basis that it paid more ($17/hr versus $15/hr). He actually liked the lower paying job more and they gave him a choice of either but he needs the money so he took the $17/hr job. He's had that job for two months and has by all accounts done well at it. Yesterday, and HR underling informed him that they made a mistake on his job offer and that he's only entitled to $15/hr. The reasoning they gave him is that as a "trainee" he can't earn more than the person training him. While I understand the principle behind the reasoning the reality is that they not only offered him $17/hr but have also paid him that for two months. Given the precedent, is it lawful for the employer to simply say "Oops, sorry" and then reduce his pay? Additionally, they implied they may be taking the money back that they overpaid him. I'm just not sure how to advise him on this other than to say "big companies tend to suck like that" - which is neither productive or helpful even if its mostly true.. I greatly appreciate any advice or wisdom you can share.

 

[Zigner]

What is the name of your state? Ohio
My son recently got an entry level job with a major employer in the area. They actually lured him to a job different than the one he had applied for on the basis that it paid more ($17/hr versus $15/hr). He actually liked the lower paying job more and they gave him a choice of either but he needs the money so he took the $17/hr job. He's had that job for two months and has by all accounts done well at it. Yesterday, and HR underling informed him that they made a mistake on his job offer and that he's only entitled to $15/hr. The reasoning they gave him is that as a "trainee" he can't earn more than the person training him. While I understand the principle behind the reasoning the reality is that they not only offered him $17/hr but have also paid him that for two months. Given the precedent, is it lawful for the employer to simply say "Oops, sorry" and then reduce his pay? Additionally, they implied they may be taking the money back that they overpaid him. I'm just not sure how to advise him on this other than to say "big companies tend to suck like that" - which is neither productive or helpful even if its mostly true.. I greatly appreciate any advice or wisdom you can share.

Yes, it's legal to lower his salary. No, it's not legal to do it retroactively.

 

[cbg]

Unless he has a legally binding and enforceable contract that expressly says otherwise, they can reduce his pay going forward any time they feel like it as long as they do not take it below the higher of state or Federal minimum wage. Nothing in Federal or state law prohibits pay reductions per se.

Whether they can claim an overpayment for hours already worked and paid is an interesting question and I'm not sure the answer is black and white. There is nothing in Ohio law that expressly prohibits it and I don't recall anything in Federal law that does, either. I've heard the point argued as a contract issue and I've also heard the contract issue refuted. If that should actually happen I would recommend that he at least consult with a local attorney as Ohio wage and hour laws are not the strongest in the US (they're not the weakest either) and I'm not so sure that the employer might not get away with it if they were tricky enough. On a go-forward basis it's definitely legal. Of course it's a **** move; that goes without saying. But I don't think the retro part is all that black and white, at least in Ohio. @Ohiogal?

 

[Zigner]

I will concede that my earlier statement was made in haste. I do believe that this is a "contract" matter. The employee and employer agreed (contracted) to a certain wage for a certain period of time. To go back and change that retroactively would create a breach of the agreement (contract).