Of Counsel Mark Neuberger was interviewed in the HR Bartender article, “Changing Employee Compensation – Ask #HR Bartender,” discussing whether employers can change an employee’s base pay.
Neuberger said the first line of inquiry is whether the employee is ‘at-will.’ An employee-at-will means “they do not have a binding contract of employment, then in most instances an employer is free to adjust compensation but only on a going forward basis.”
“If the employee has a binding contract, that removes them from at-will status. In that case, the terms of the specific contract govern the relationship. Under a contract, a unilateral change of almost any type by the employer may be a breach of contract that would give the employee rights to sue to recoup the reduction,” he said.
Read the full interview for more of Neuberger’s insights on the questions.