Can they lower wages?

[Ellyn]

My DH works in a factory (some line work, some office work, etc.) The company is a large manufacturer of windows, and they are going through some tough times with building so slow right now...they have already had mandatory and volunteer layoffs (thankfully, DH was not one of them because he knows so many of the jobs there) There have been rumors flying around the factory lately that the company is going to lower wages by a few dollars an hour. Can they legally do this since these people have been earning at their current wage for quite some time? They are not unionized and some of the employees have been hired through hiring services (if that matters). DH doesn't think the rumor is true because he doesn't think they can legally do it, but I don't know what is stopping them? If they do this, DH will have to start looking for a job...or we'll have to sell our house. :confused: Anyone?

ETA: He is not salaried (no one is except the lead positions and head people)

[Leia]

I don't know anything about union situations. I can tell you that I work in corporate America and experienced salary cuts twice. Once the week of 9/11/01 (I worked for firm A)and once in late 2002 (I was at firm B by then). 7% and 11%. It was terrible, but there was nothing illegal about it. I have seen and heard it happen elsewhere as well, but I don't know anything about your DH's industry.

I am very sorry you have to worry - I hope it's just a rumor.

[jennylou]

Well, what happened to me was that my position was eliminated and I was told I could accept another position for like $4 less per hour. I was very pregnant, so I took it at the time. :( I did the exact same work as before, just with a new title and much lower pay.

[kam]

Unfortunately it is perfectly legal especially if they aren't unionized (and if they have contract workers).

[dionysia]

What Kam said.

The only question (and this depends on your state) is what kind of advance notice the company may have to provide.

[Chimichanga]

They can lower the salary rate but they have to alert people of it first. As long as it's not lower than minimum wage.

[eponymous]

I would guess that if they have a contract, it's harder to lower wages until the contract expires, but it sounds like that's not the case...

[dionysia]

They can lower the salary rate but they have to alert people of it first.

Depends on the state.

[Ellyn]

Thanks everyone...unfortunately, that's what I figured - they can do whatever they want. :( So, how do we find out if they have to give notice (and how much notice) or not. (FTR we're in Wisconsin).

[salysaturn]

Same as Jennylou. When our office closed, they offered similar positions for less pay. I stayed, but they upped my wage since I was already the lowest paid.

[dionysia]

In Wisconsin, employers have to give advance notice of the wage reduction before the work is performed. For example, if the employees are paid weekly, the employer must give notice of the wage deduction before the week when the reduced wage starts.

[Ellyn]

Thanks dionysia!