5 ms·
Barring specific states or specific circumstances (e.g. negotiated terms with a union), yes that is the way it works in most of the US. Your employer cannot re
by jffry 5y ago
Barring specific states or specific circumstances (e.g. negotiated terms with a union), yes that is the way it works in most of the US.
Your employer cannot retroactively change your compensation for work already performed, but they can, at any time, tell you that your compensation is changing and all future work will be paid at a new (usually lower) rate.
Depending on jurisdiction, if you were to quit in the face of a significant enough pay cut, you might still qualify for unemployment. It's very fact dependent, your former employer will likely contest it (requiring an appeal on your part), and you should talk to an employment lawyer.
- rexreed 5y agoIf employers have the right to make arbitrary compensation changes for future work, they they should lose any rights to enforce non-competition clauses in employee agreements. Non-competition introduces asymmetric decision-making since the employee cannot arbitrarily decide to leave for a matter as straightforward as a compensation change because they will no longer be able to work in their desired industry or market or job role.
- jffry 5y agoSome states, like California, do place stricter limits or outright on non-competes, and it's gaining steam in other places. Worker's rights in the US are generally terrible so it's a giant patchwork of varying quality.
- astura 5y agoThe legality of a non-compete agreement depends entirely on local and state laws and the exact language in the non-compete.