Jeff, that's state specific. Some states specifically prohibit it; some states imply a prohibition; a very few states don't address it. It's safest to assume there is a prohibition, but to be strictly accurate, depending on state law it *might* be legal.
Poster, frankly, yes, I would. You're talking about "appropriate" pay and "correct pay" as if that means something. It doesn't. Eliminating a department or a job does not mean that the duties no longer need doing. If they want to pay different rates of pay for different jobs there is nothing in employment law that says they can't. As long as she is being paid minimum wage or more, she is being paid legally. Are jobs so plentiful in your neck of the woods that she wants to throw this one away because they've changed the rate of pay?

