Many people have legal questions regarding employee compensation. A large question is if employers can decrease an employees’ compensation in the future. If an employee is classified as an ‘At Will’ employee, an employer can often legally make adjustments to their compensation. However, if an employee is under contract it can be more difficult for the employer to change their compensation. In many cases an employer cannot retroactively change commission and bonus compensation, particularly if the employee is under contract. Employers can usually pay different salaries to different ‘At Will’ workers, but they must be careful to not violate any anti-discrimination laws.
Key Takeaways:
- If an employee is not under contract an employer can typically change their compensation on a going forward basis.
- Under contract, any changes to compensation could potentially be a breach of contract.
- In Florida, the difference between at-will status and a contract is if the employer promises employment for a certain amount of time.
“If you have detailed questions, they should be addressed directly with your friendly neighborhood labor and employment attorney.”
Read more: https://www.hrbartender.com/2020/employee-engagement/changing-employee-compensation/
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