Small business answers — NOW!

Employee salary reduction

Question
Is it permissible to reduce an employee's salary? 
Answer
It's the employer's prerogative to set pay rates for employees and to periodically adjust those pay rates. Note that a pay "adjustment" may be up or down.

The timing, frequency and size of the pay adjustment, likewise, is at the employer's prerogative, unless otherwise defined or limited by an employment agreement or union agreement. 
Brain Trust contributor: Author of Improving Performance Results
Related Categories: Human Resources, Management
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 1109