Q: In IL., is it legal to drop ones pay 30 % if asked to take another position within the company?
I work for a major retail firm.
A: Yes, your employer can change your rate of pay at any time for any reason, as long as it is not for an unlawful reason and as long as your pay is compliant with state and federal wage and hour laws.
Yes, under the Illinois Wage and Payment Act, an employer may reduce your rate of pay IF you are notified of the change prior to performing the work and your wage does not fall below minimum wage. See Section 300.630(d).
TITLE 56: LABOR AND EMPLOYMENT
CHAPTER I: DEPARTMENT OF LABOR
SUBCHAPTER b: REGULATION OF WORKING CONDITIONS
PART 300 PAYMENT AND COLLECTION OF WAGES OR FINAL COMPENSATION
SECTION 300.630 RECORDS AND NOTICE REQUIREMENTS
Section 300.630 Records and Notice Requirements
d) An employer is required to notify an employee in writing, at the time of hiring, of the rate of pay. An employee commencing work shall reflect mutual assent to the rate of pay. An employer shall not change an agreement regarding the payment of wages and compensation without first notifying the employee prior to the effective date of the change. The employer shall place the arrangement in writing at the time of the change and present the change to the employee unless impossible to do so. Because of extraordinary circumstances, the immediate placement in writing may not be able to be accomplished, but this inability to do so must be immediately rectified. An employer cannot rely upon an employee's continued employment as affirmation that the employee consented to an adverse modification of the employee's rate of compensation when the employee was not notified in writing of the modification prior to its effective date. However, when the employee continues to work after being notified of a change in writing, the employee shall be presumed to have assented to the change, absent evidence to the contrary. An employer may not retroactively adversely affect the wages earned by an employee. In every employment relationship, it is presumed that the employer will pay for all hours worked, as defined in 56 Ill. Adm. Code 210.110. An employee who has not been paid for all hours worked is not presumed by reason of the employee's continuing to work to have assented to work without compensation for the hours worked at the agreed rate of compensation or to have assented to the non-payment of required or promised overtime pay.
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