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.


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.

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1 Lawyer Answer
Carrie Dyer
Carrie Dyer

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.

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