Celina, TX asked in Contracts and Employment Law for Texas

Q: Can my rate as a contractor be reduced in the middle of the contract?

I signed an employment contract with this company last July that runs through July 2021. Yesterday out of the blue i got a docusign from the company with a retroactive lower rate that what i signed for last July, so i asked for explanation and below is the response i got. Any advise on what i can proceed legally.

Hi

I hope all is well. Back in October 2020 $#%$$^ implemented a new tool for hiring/sourcing called Beeline. During this time they reduced all the rates drastically on our end. We have up until now been absorbing the burden of the rate reduction. With that being said, we are no longer in the position to full absorb the decrease and need to pass on some of the reduction to you. I know this is not the best of news but it takes effect from the 4/11 Payroll moving forward.

Thank you.

Related Topics:
1 Lawyer Answer
Carrie Dyer
Carrie Dyer
Answered

A: Whether you have a claim depends on the language in your employment contract. Did the contract guarantee you a certain rate of pay through July 2021, or did the contract allow the employer to change your compensation in its discretion? You should contact an employment attorney in your area to seek a review of the contract.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.