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
  • 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.

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.