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Retroactive Pay Deductions

My husband was hired by a large corporation to be the Manager of a new concept opening in another town. After training, he was informed that the new concept would not open for at least two years. They did not know what to do with him and for a while he was driving two hours a day to one of their restaurants, but they finally moved him closer to home. Unfortunately his new position was basically a demotion and he was forced to take a significant pay cut. I understand that they have the legal right to do this, even though it was not through any fault of his own, but here is the problem: They failed to change his wages for the first two months that he worked there, and because his check is automatically deposited, we didn't catch the mistake right away. When they caught it, about two days after we did, they informed him that they are taking ALL of the extra money out of his next paycheck, which means his next check will be about 1/4 of what he usually makes, if we are lucky. He asked them to take it out in installments, but they refused. Can they do this legally? We can't pay our bills this month, including our house payment, if they take it all out at once. Thanks for any advice.

2 answers  |  asked Oct 12, 2004 7:38 PM [EST] in Employment Law  |  applies to Texas

Answers (2)

Joe Gilbreath
Unauthorized Deductions

Your husband my later be discharged. He may wish to wait and see before pushing them in that direction. Without more information I cannot tell if the reduction in pay was something "they have a legal right to do." Consult a Texas attorney soon for advice on when and how to file a claim. The Labor member of the Texas employment commission may also be able to help you.

posted by Joe Gilbreath  |  Oct 13, 2004 7:52 PM [EST]
Margaret A. Harris
Unauthorized Deductions

An employer in Texas may not deduct anything from an employee's paycheck unless it's a court-ordered deduction (like child support) or its for taxes -- or if the employee signed something authorizing the deduction. Unless your husband signed something giving the company permission to withhold these amounts from his paycheck, the company is violating the law. Sounds like this company may not be worth working for.

posted by Margaret A. Harris  |  Oct 12, 2004 10:59 PM [EST]