Can My Employer Change My Pay Rate?

The General Rule: Prospective vs. Retroactive

In most "At-Will" jurisdictions (including 49 US states), an employer has the legal right to change an employee's pay rate for future work. However, there is a fundamental mechanical barrier that protects workers: **Retroactive pay cuts are prohibited.**

Mechanically, this means that if you work on Monday at $25/hour, your employer cannot tell you on Friday that they decided to pay you only $20/hour for the work you already completed. They must notify you of the change before the work is performed.

Notice Requirements by Region

United States (Federal & State)

Under the FLSA, there is no federal notice period required for a pay cut, as long as the new rate is above the minimum wage. However, many states have strict notice statutes:

• California: Requires notice of a pay change before the work is performed (usually via a new 'Notice to Employee').
• New York: Requires written notice at least seven calendar days before a pay decrease takes effect.
• Missouri: Requires 30 days' notice before reducing wages.

United Kingdom

In the UK, pay is a fundamental term of the **Employment Contract**. An employer cannot unilaterally change your pay without your agreement or a specific "variation clause" in the contract. Attempting to force a pay cut without agreement may be considered a "Fundamental Breach of Contract" or "Constructive Dismissal."

Common Misconceptions