HR Tip of the Week

HR Tip of the Week

Can an Employer Reduce Pay at Termination?

Can an employer reduce an employee’s pay for quitting without notice? In today’s trend of employees quitting without notice, it’s not uncommon to hear that employers are taking measures to prevent employees from doing so by reducing their compensation as allowed by federal and state law. Under federal law, should an employee not be in union contract, employment contract, etc., this may be a violation. However, if no contracts exist, may be allowed as long as the final pay doesn’t dip beneath minimum wage. We recommend being mindful of state laws mandating that employees under the state minimum wage law such as Missouri to provide its employees with written notice prior to reducing the normal wages. Some employers have gone as far as stating within their new hire packet and policies to serve as written notice and meet the timeframe specified by the state. To learn more, contact, or call 877-894-0202.

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