Can my employer reduce my salary if I have a contract

I have been working for this company for nearly a year. In the last month he has hired two new office personnell (we only now have 5 employees other than the owner) and he told me that he would be cutting my pay by 33% but not reducing my hours or my duties. I have not accepted the new offer and do not want to take a chance of losing my ability to draw unemployment. What are your suggestions.

1 answer | asked Jan 14, 2013 08:14 AM [EST] | applies to North Carolina

Answers (1)

If you have a contract for a fixed period of time, you may have something that will protect you until that time period is exhausted. The document would need to be reviewed by counsel. If the contract was subject to being cancelled at any time, then you may not be able to challenge the employer's plan, but again, the contract should be reviewed by counsel. If your only concern is whether you can receive unemployment because you consider this to be such a big cut in pay that you must leave, then -- without checking the regulations -- I think you may be able to receive unemployment(because of the size of the cut); however, I would recommend that you call DES (Division of Employment SErvices) and ask them how big the cut must be in order to justify your leaving the job. Obviously, it might be smart for you to work until you find another job rather than start using a benefit that you might need later. Sounds like it could be smart to have a personal conference with an employment lawyer in your area.
Good luck.

posted by Reagan Weaver | Jan 14, 2013 08:53 AM [EST]

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