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        • Should You Offer Severance Pay
        • Final Paycheck Rules
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        • Employee Non Solicit Case Study
        • Employment Termination Case Study
        • Wage and Hour and Travel Time Case Study
        • Multistate Wage and Hour Compliance Case Study
        • Termination and Unemployment Case Study
      • Employment Defense Case Studies >
        • MCAD Defense Case Study
        • Race Discrimination Defense Case Study
        • Wage Act Defense Vacation Pay Case Study
        • Defense of Wage Act Claim Case Study
    • Advice for Employees >
      • Overview of Discrimination Harassment and Retaliation >
        • Discrimination in the Workplace >
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          • National Origin Discrimination
          • Race Discrimination
          • Disability Discrimination >
            • Reasonable Accommodations for Disability
            • Disability Discrimination FAQs
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        • Unlawful Retaliation >
          • Reporting Discrimination Retaliation Guide
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          • PFMLA Retaliation Guide
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        • Sexual Harassment at Work >
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          • Sexual Harassment in a Small Business
          • Reporting Sexual Harassment to Your Employer
          • Constructive Discharge
          • Sexual Harassment and Non Disclosure Agreements
          • Sexual Harassment and Remote Work
          • Sexual Harassment Case Studies
        • Equal Pay Act
      • Employment Transitions: Termination and Resignation >
        • Employment Termination >
          • Performance Improvement Plan
          • Wrongful Termination
          • What to Do if You Are Fired
          • How to Bring a Discrimination or Harassment Lawsuit
          • Should I Accept a Severance?
        • Severance Pay >
          • Evaluating Severance Agreement
          • What is Reasonable Severance
          • Negotiating Severance
          • Severance Pay and Unemployment in Massachusetts
          • How an Attorney Can Help With Severance
          • Severance Agreement Checklist
          • Rejecting a Severance Agreement
        • How to Leave a Job >
          • Voluntary Resignation and Unemployment
          • Workplace Harassment Quit or Resign
          • Effect of Resignation on Legal Rights
          • Quitting a Job Without Notice
      • Non Competes and Other Employment Contracts >
        • Non Compete Agreements >
          • Are non competes enforceable
          • Massachusetts Non Compete Act
          • Pre 2018 Massachusetts Non Competes
          • Understanding the Scope of Your Non-Compete Agreement
          • Evaluating reasonabless of geographic restrictions in a non compete
          • Evaluating reasonabless of time restrictions in a non compete
          • Non Compete Case Studies
          • Can I Avoid My Non Compete
        • Employment Contracts in Massachusetts >
          • Restrictive Covenants
          • Employer Repayment Demands
          • Promissory Estoppel
          • Employment Termination Provisions
      • Wage and Hour and Employee Classification >
        • Wage and Hour Laws >
          • Massachusetts Minimum Wage
          • What Are Your Wage and Hour Rights
        • Massachusetts Wage Act >
          • Wage Deductions
          • Late Payment of Wages
          • Paid Time Off
          • Wage Act Case Studies
        • Overtime Law >
          • Overtime Exemptions
          • Employee Travel Time
          • Federal or State Overtime Law
          • Overtime Law Case Studies
        • Payment of Commissions >
          • Commission or Bonus Under the Law
          • Commission Payments and Employment Termination
          • Minimum Wage Considerations for Commission Based Employees
          • Commission Pay and Wage Deductions
          • Monthly or Quarterly Payment of Commissions
          • Commission Pay Case Studies >
            • Retroactive Commission Cuts
            • Commissions Delayed on Termination Case Study
            • Unjust Commissions Deductions Case Study
            • Commissions and Customer Refunds
        • Independent Contractor Law >
          • Independent Contractor Test
          • Working As Independent Contractor
          • Independent Contractor Case Studies
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        • Understanding the Health Care Proxy
        • MOLST Form
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        • Death of a Loved One Legal Steps
        • Funeral Planning and Preplanning
        • Non Probate Assets >
          • Beneficiary Designations
        • Probate Process
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      • Last Will and Testament
      • What is a Trust >
        • Revocable trust
        • Irrevocable trust
        • Irrevocable vs revocable trust
      • Massachusetts Health Care Proxy
      • Durable Power of Attorney
      • Massachusetts Pet Trust
      • Beyond the Will: Enhancing Your Estate Plan >
        • Is Your Will Enough
        • Surviving Spouse's Share
        • Disinheriting Children Massachusetts
    • Estate Planning Case Studies >
      • Couples Estate Planning Case Study
      • Proactive Estate Planning Case Study
      • Estate Tax Planning Case Study
      • Estate Planning Case Study: Asset Protection
      • Estate Planning Case Study: Pets
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      • Estate Planning Case Study Codicil
      • Estate Planning Case Study Unique Wishes
      • Estate Planning Case Study Family Financial Future
      • Estate Planning Case Study Business Succession
      • Estate Planning Case Study Blended Family
      • Estate Planning Case Study Medicaid Trust
      • Estate Planning Case Study Non Traditional Bequests
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    • Guide to Small Business Disputes >
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Can I Reduce an Employee's Compensation Without an Agreement?

Legal Considerations When Reducing an Employee's Pay

Reducing an employee's agreed-upon pay is not something most people do lightly, but sometimes it is necessary.  Either there is a performance issue that requires it, or financial constraints for the business.

Assuming you do not have a written contract with an employee that guarantees a specific term of employment, you have the legal right to modify, and even to reduce, compensation on a going forward basis.  This is because where employment is "at will," you have no obligation to continue employing them, so you can present essentially a new employment package at the new rate, which they can accept by continuing to work or reject by resigning.

What you need to be careful about is that the change does not affect anything earned before you announce the change, whether that be wages or commissions.  Retroactive impact could put you in violation of the Wage Act, and put you at risk of a lawsuit.

Learn more here about the Massachusetts Wage Act.

Need Help With an Employee Compensation Question?

Call (781) 784-2322
OR
Schedule a Free Information Call
What should I do if an employee requests their personnel file?

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  • Home
  • Employment Law
    • Guide To Employment Law Content >
      • Employment Law Services Guide
      • Employment Policies and Contracts Guide
      • Non Compete Agreement Guide
      • Employment Termination Guide
      • Employment Discrimination and Harassment Guide
      • Disability and Illness in Employment Guide
      • Wage and Hour Law Guide
      • Independent Contractor Law Guide
      • Employment Litigation Guide
      • Severance Agreement Guide
      • Employer Resource Guide
    • Advice for Employers >
      • Dealing With a Problem Employee >
        • Fair Treatment as Risk Management
        • Prompt Action With Problem Employees
        • Wage and Hour Compliance in Employee Terminations
      • Employer's Guide to Discrimination Harassment and Retaliation >
        • Workplace Discrimination Employer Guide
        • Responding to a Sexual Harassment Complaint
        • Navigating an Employment Discrimination Lawsuit
        • Employer's Guide to Retaliation Laws
        • Equal Pay Act for Employers
      • Employer's Guide to Employee Illness and Family Leave >
        • Paid Family Leave and Your Small Business
        • Employer's Guide to Parental Leave Laws
        • Employer's Guide to the Earned Sick Time Law
        • Employer's Guide to Reasonable Accommodations
      • Employer's Wage and Hour and Classification Guide >
        • Employer's Guide to Wage and Hour Laws
        • Employer's Guide to Wage Deductions
        • Overtime Law for Employers >
          • Calculating Overtime Pay
        • Employee Complaints About Pay
        • Navigating a Wage and Hour Lawsuit
        • Hiring Independent Contractors in Massachusetts
      • Employer's Guide to Employment Contracts and Handbooks >
        • Employee Non Competes >
          • Non Compete for Independent Contractors
        • Employee Handbook >
          • Employee Handbook Basics
          • Personnel file law
          • Employer's Guide to Termination Provisions
      • Employer's Termination Guide >
        • Overview of Employment Termination Laws
        • Should You Offer Severance Pay
        • Final Paycheck Rules
        • Termination Best Practices
      • Employment Law Case Studies >
        • Employee Non Solicit Case Study
        • Employment Termination Case Study
        • Wage and Hour and Travel Time Case Study
        • Multistate Wage and Hour Compliance Case Study
        • Termination and Unemployment Case Study
      • Employment Defense Case Studies >
        • MCAD Defense Case Study
        • Race Discrimination Defense Case Study
        • Wage Act Defense Vacation Pay Case Study
        • Defense of Wage Act Claim Case Study
    • Advice for Employees >
      • Overview of Discrimination Harassment and Retaliation >
        • Discrimination in the Workplace >
          • Gender Discrimination >
            • Gender Discrimination Case Studies
          • Age Discrimination >
            • Age Discrimination Case Studies
          • LGBTQ Discrimination
          • National Origin Discrimination
          • Race Discrimination
          • Disability Discrimination >
            • Reasonable Accommodations for Disability
            • Disability Discrimination FAQs
            • Disability Discrimination Case Studies
        • Unlawful Retaliation >
          • Reporting Discrimination Retaliation Guide
          • Sexual Harassment Retaliation Guide
          • PFMLA Retaliation Guide
          • Earned Sick Time Retaliation Guide
          • Wage and Hour Retaliation Guide
          • Workers Compensation Retaliation Guide
          • Public Employee Whistleblower Retaliation Guide
          • Health Care Worker Whistleblower Retaliation Guide
          • Retaliation Case Studies
        • Sexual Harassment at Work >
          • Sexual Harassment Resources
          • Sexual Harassment in a Small Business
          • Reporting Sexual Harassment to Your Employer
          • Constructive Discharge
          • Sexual Harassment and Non Disclosure Agreements
          • Sexual Harassment and Remote Work
          • Sexual Harassment Case Studies
        • Equal Pay Act
      • Employment Transitions: Termination and Resignation >
        • Employment Termination >
          • Performance Improvement Plan
          • Wrongful Termination
          • What to Do if You Are Fired
          • How to Bring a Discrimination or Harassment Lawsuit
          • Should I Accept a Severance?
        • Severance Pay >
          • Evaluating Severance Agreement
          • What is Reasonable Severance
          • Negotiating Severance
          • Severance Pay and Unemployment in Massachusetts
          • How an Attorney Can Help With Severance
          • Severance Agreement Checklist
          • Rejecting a Severance Agreement
        • How to Leave a Job >
          • Voluntary Resignation and Unemployment
          • Workplace Harassment Quit or Resign
          • Effect of Resignation on Legal Rights
          • Quitting a Job Without Notice
      • Non Competes and Other Employment Contracts >
        • Non Compete Agreements >
          • Are non competes enforceable
          • Massachusetts Non Compete Act
          • Pre 2018 Massachusetts Non Competes
          • Understanding the Scope of Your Non-Compete Agreement
          • Evaluating reasonabless of geographic restrictions in a non compete
          • Evaluating reasonabless of time restrictions in a non compete
          • Non Compete Case Studies
          • Can I Avoid My Non Compete
        • Employment Contracts in Massachusetts >
          • Restrictive Covenants
          • Employer Repayment Demands
          • Promissory Estoppel
          • Employment Termination Provisions
      • Wage and Hour and Employee Classification >
        • Wage and Hour Laws >
          • Massachusetts Minimum Wage
          • What Are Your Wage and Hour Rights
        • Massachusetts Wage Act >
          • Wage Deductions
          • Late Payment of Wages
          • Paid Time Off
          • Wage Act Case Studies
        • Overtime Law >
          • Overtime Exemptions
          • Employee Travel Time
          • Federal or State Overtime Law
          • Overtime Law Case Studies
        • Payment of Commissions >
          • Commission or Bonus Under the Law
          • Commission Payments and Employment Termination
          • Minimum Wage Considerations for Commission Based Employees
          • Commission Pay and Wage Deductions
          • Monthly or Quarterly Payment of Commissions
          • Commission Pay Case Studies >
            • Retroactive Commission Cuts
            • Commissions Delayed on Termination Case Study
            • Unjust Commissions Deductions Case Study
            • Commissions and Customer Refunds
        • Independent Contractor Law >
          • Independent Contractor Test
          • Working As Independent Contractor
          • Independent Contractor Case Studies
          • Independent Contractor Roadmap
      • Employee Illness and Family Leave >
        • Massachusetts Paid Family Leave >
          • Parental Leave
        • Employee Illness and Disability
        • Earned Sick Time Law
    • Unemployment in Massachusetts >
      • Unemployment Overpayment
      • Pandemic Unemployment
      • Unemployment Case Studies
      • Working With Our Unemployment Team >
        • Unemployment Lawyers
        • Unemployment New Client Intake and Consultation Employment
        • Unemployment Assessment
        • Unemployment Representation
    • Working With Our Employment Law Team >
      • Employment Lawyers
      • Employment Case Assessment
      • Employer Case Assessment and Strategy
      • New Client Intake and Consultation Employment
  • Estate Planning
    • Guide To Estate Planning Content >
      • Estate Planning Guide Overview
      • Essential Estate Planning Documents Guide
      • Asset Protection Guide
      • Guide to How to Make a Will
      • Estate Planning in Unique Circumstances Guide
      • Guide to Death of a Loved One
    • Addressing the Threats to Your Legacy >
      • What is a Legacy >
        • Asset Protection Trusts
        • Children with Special Needs
      • Massachusetts Estate Tax
      • The Challenge of Long Term Care Planning >
        • Summary of Long Term Care Issues >
          • Understanding Medicaid Trusts
          • Assisted Living FAQs
          • Life Estates in Massachusetts
          • Assisted Living Planning Guide
      • Probate Time and Expense
      • Inertia and Shortcuts
    • Estate Planning Why When and How >
      • Who Needs an Estate Plan
      • When Do You Need an Estate Plan >
        • Estate Planning Guide for Every Life Stage >
          • Estate Planning for Young Adults
          • Estate Planning for Young Families
          • Estate Planning in MIddle Age
          • Estate Planning in Retirement Age
        • Guide to Specific Estate Planning Circumstances >
          • Estate Planning for Blended Families
          • Estate Planning for a Non Citizen Spouse
          • Estate Planning and Divorce
          • Estate Planning for LGBTQ+ Couples
          • Estate Planning for Small Business Owners
          • Estate Planning for Digital Assets
        • When to Update Your Estate Plan
      • Getting Started With Your Estate Plan >
        • Mental Capacity to Make a Will
        • How to Make an Estate Plan
        • Estate Planning Resources
      • Busting Estate Planning Myths
    • End of Life and Loss >
      • End of Life Planning Essentials >
        • End of Life Planning Checklist
        • Durable Power of Attorney End of Life Planning
        • Understanding the Health Care Proxy
        • MOLST Form
      • Death of a Loved One Guide >
        • Death of a Loved One Checklist
        • Death of a Loved One Legal Steps
        • Funeral Planning and Preplanning
        • Non Probate Assets >
          • Beneficiary Designations
        • Probate Process
    • Wills Trusts and Other Essential Estate Planning Documents >
      • Last Will and Testament
      • What is a Trust >
        • Revocable trust
        • Irrevocable trust
        • Irrevocable vs revocable trust
      • Massachusetts Health Care Proxy
      • Durable Power of Attorney
      • Massachusetts Pet Trust
      • Beyond the Will: Enhancing Your Estate Plan >
        • Is Your Will Enough
        • Surviving Spouse's Share
        • Disinheriting Children Massachusetts
    • Estate Planning Case Studies >
      • Couples Estate Planning Case Study
      • Proactive Estate Planning Case Study
      • Estate Tax Planning Case Study
      • Estate Planning Case Study: Asset Protection
      • Estate Planning Case Study: Pets
      • Estate Planning Case Study Guardians
      • Estate Planning Case Study Codicil
      • Estate Planning Case Study Unique Wishes
      • Estate Planning Case Study Family Financial Future
      • Estate Planning Case Study Business Succession
      • Estate Planning Case Study Blended Family
      • Estate Planning Case Study Medicaid Trust
      • Estate Planning Case Study Non Traditional Bequests
      • Estate Planning Case Study Predeceased Child
      • Estate Planning Case Study Changed Circumstances
      • Estate Planning Case Study Estate Tax Planning for Married Couple
      • Estate Planning Case Study Safeguarding Assets
    • Working With Our Estate Planning Team >
      • Estate Planning Lawyers
      • New Client Intake Estate Planning
      • Initial Estate Planning Assessment
      • Creating Your Estate Plan
      • Estate Planning Process Overview
  • Business Law
    • Guide to Business Law Content >
      • Small Business Law Resource Center
      • Start Up Legal Guide
      • Employment Issues for Business Owners
      • Business Litigation and Dispute Resolution Guide
    • Small Business Law Issues >
      • How To Use a Business Lawyer
      • How to Incorporate
      • Corporate Transparency Act
      • Business Contract Basics
      • Trademark Basics
      • Sale of Business
      • Legal Issues for Start Ups
    • Business Law Case Studies >
      • Business Buyout Case Study
      • Franchise Decision Case Study
      • Workforce Expansion Case Study
      • Business Law Advice Case Study
      • Expanding Equity Case Study
      • Protecting the Family Business Case Study
    • Guide to Small Business Disputes >
      • Common Small Business Disputes >
        • Breach of Contract Disputes
        • Common Employment Disputes
        • Business Torts
        • Shareholder Disputes
        • Shareholder Freeze Out
      • Business Dispute Resolution Strategies >
        • Civil Suit Defense
        • What is Arbitration >
          • Arbitration Agreement
        • What is Mediation >
          • Mediation Provision
      • Business Dispute Case Studies >
        • Real Property Dispute Case Study
        • Contract Dispute Case Study
        • Predatory Services
        • Family Business Dispute
        • Credit Card Processing Dispute
        • Non Compete Blocking Entrepreneurs
        • Insurance Agent Non Compete
        • Veterinary Clinic Ownership Dispute
        • Non Solicitation Case Study
    • Working With Our Business Law Team >
      • slnlaw Business Lawyers
      • New Business Client Intake and Consultation
      • Business Case Assessment and Strategy
      • Holistic Business Law Services
  • Civil Litigation Guide
    • Civil Litigation Overview
    • Statute of Limitations
    • Civil Lawsuit Discovery
    • What to Expect as a Plaintiff
    • What to Expect as a Defendant
    • Civil Lawsuit Settlement
    • Working With Our Litigation Team >
      • Litigation Attorneys
      • New Litigation Client Intake and Consultation
      • Civil Litigation Initial Engagement
      • Litigation Success Principles
  • About
    • How Slnlaw Can Help
    • Reviews
    • Slnlaw Offices
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway >
      • Jenna Ordway Business Law Matters
      • Jenna Ordway Employment Law Cases
    • Rebecca Rogers
    • Sharleen Tinnin
    • Elijah Bresley
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs
  • Blog