Voluntary wage reduction

M Warner · December 2001

Our receptionist has requested to be reassigned to another department. This new position requires fewer job skills and therefore, she would take a cut in pay from $10/hour to $9/hour to make this voluntary change. She holds that it is illegal to change an employee's wages to a lesser amount. I am quite certain that a voluntary request to change departments, job duties and skill level, and therefore, hourly wage, is quite legal. Now that she has raised the question, however, I want to make absolutly sure.
Is it legal to give a cut in pay under such conditions?

Hatchetman · December 2001

Unless you have a union contract or other type contract appicable to this individual or you fall under a merit or civil service classificaton system of some kind, I don't see why you can't reduce the income in accordance with the earnings you pay for the "lower level position." I assume you have some type of system that pegs earnings to the position rather than a system of "negotiations" between the individual and the company to determine the earnings.

Have the employee explain why she thinks her earnings can't be reduced accordingly if she's voluntarily going to a lower "level" job.

Theresa Gegen TX · December 2001

no problem that I know of in reducing it.

Good Luck!

smarti · December 2001

Your paying for skill level - if the new position is of a different skill level and is paid accordingly, then no problem. A lot of employees would like to take a lesser position but keep their higher pay. Doesn't make sense and is in compliance with the FLSA are far as I know. Good luck,

Gillian · December 2001

I'm in California as well, and there is nothing special about California regulations that impact this. All of the responses you have received are on target.

Voluntary wage reduction

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