Fort Walton Beach, FL asked in Contracts and Government Contracts for Florida

Q: BLUF: Question about legality of pay cuts and avenues of action as a Contractor.

Say a large company wins the bid for a federal contract to provide Network/IT services to the military in Florida and offers you a position at say $86,000 along with a signing bonus or education benefits. However, if you take the sign on bonus or use those education benefits you are required to stay with the company for 1-2 years or you have to pay the full amount back.

But, 3 months down the line after you've already taken the sign on bonus or used education benefits, the company informs you that they are cutting everyone's pay by 30-40%. (The company in question has done something similar to other contracts in the past)

Is this legal?

Would I be required to pay the benefits back if they randomly change my pay like this?

And what is my recourse, if any in this situation?

1 Lawyer Answer
Joseph Raymond Schwantes
Joseph Raymond Schwantes
Answered
  • Cooper City, FL
  • Licensed in Florida

A: An attorney should review your contract to determine what rights they have to reduce your agreed pay and exactly what parameters surround the sign-on bonus and education credits. Like with many issues in contract law, it depends on what the contract says.

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