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Wage Re-rate legal?

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Randy1984

Junior Member
Ohio

Is it legal to reduce an Employee's pay to minimum wage over an absence?

My fiance works as a hair stylist. Her employer is trying to get all employees to sign this new policy which states:

"Effective Immediately, in fairness to all our employees, if an employee calls off their last scheduled shift before or after a holiday, and does not provide a valid, local doctors excuse, that employees pay for the current pay period will be re-rated to minimum wage and NO commissions (service or retail) will be paid."

Is this legal? It sounds completely illegal to me, and like bad business. Sometimes people miss days, it happens, to take away more than half their wages seems illegal over a single missed day.
 


ecmst12

Senior Member
If they agree to it, it's legal. If they don't agree, they can legally be fired. It sounds like people are abusing their sick time and calling off right before or after a holiday.
 

cbg

I'm a Northern Girl
Yes.

The law requires ONLY that an employee be paid minimum wage for all hours worked, and overtime for hours over 40 in a week. Wage reductions are not inherently illegal as long as it is not reduced below m/w. As long as an employee is notified of the change in policy in advance, it is legal. Refusing to sign does not exempt an employee from the policy - the signature only shows that they were made aware of it. Refusing to sign is a legal reason to terminate employment.
 

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