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  1. #1
    Join Date
    Nov 2016
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    3

    Default Can an Employer Withhold a Pay Increase Based on Changes in the Law

    My question involves labor and employment law for the state of: idaho

    I was offeed a raise to 47,000 from 38,000 due to the department of labor law that was due to go into effect dec,1 2016. With the Texas judge injunction which will prevent the law from going into effect my company has postponed the wage increases. Being that I have a written agreement stating I would get a wage increase is it legal to recind it?

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Blocked Dol Law

    Unless the notice amounts to qualifying as a contract, they do not have to provide the raise.

  3. #3
    Join Date
    Nov 2016
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    3

    Default Re: Blocked Dol Law

    "Based on your restaurants sales volume, your performance and your current compensation of 38,000 you fall into a salary plan we refer to as Modified Exempt. Under this plan, you will be paid a guaranteed amount, on a bi-weekly basis equal to 47,476 annually. Your new base salary will be 42,750 and the first 4,726 of your bonus will be guaranteed regardless of your actual performance in order to ensure you make at least 913 weekly. This is an increase in your guaranteed annual compensation of 24.94%. As a result of this increase you will not be eligible for additional merit increase based on performance and the compensation range for your restaurant in March 2107."

    Then in breaks down how it works with examples.

  4. #4
    Join Date
    Sep 2005
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    Default Re: Blocked Dol Law

    Absent a binding contract to the contrary, as long as you are paid at least the minimum wage, your employer may change your wages at any time -- up or down -- for work you have not yet performed.

  5. #5
    Join Date
    Nov 2016
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    3

    Default Re: Blocked Dol Law

    What is this letter missing to say it is not a binding contract?

  6. #6
    Join Date
    Sep 2005
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    Default Re: Blocked Dol Law

    It's missing anything that would prevent the employer from unilaterally rescinding the wage adjustment.

  7. #7
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Blocked Dol Law

    And they can prospectively change it and postpone it as long as the law doesn't require more. Just not retroactively.

    In all honestly I am surprised they chose to give you a 24+% increase rather than make you hourly !

  8. #8
    Join Date
    Jan 2006
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    38,867

    Default Re: Blocked Dol Law

    Quote Quoting hr for me
    View Post

    In all honestly I am surprised they chose to give you a 24+% increase rather than make you hourly !
    i suspect the employer will be sure they get the better end of the deal. Unlimited overtime with need to provide compensation; an employers dream.

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