Q&A: How can a small business cut employee salaries without signing new contracts?

Question by Andrew M: How can a small business cut employee salaries without signing new contracts?

Best answer:

Answer by Cindy F
Do you have a contract that states your pay in it? Most employees do not, most do not even have a contract unless you are a member of a union. Unless you have a contract that clearly states that you are to be paid “x” until a certain date, your employer is free to adjust your pay (up or down) anytime they wish. They are also free to lay you off or fire you.

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