Yes, it is likely legal for your employer to reduce your pay. It may not be ideal, but they can issue a pay cut. They are not legally obligated to continue paying you the same amount that you were offered when you were hired, unless there is an employment contract in place stipulating how much you must be paid.
That said, there are some issues that could make a pay reduction illegal. One is if it applies to hours that you already worked. Your employer cannot retroactively reduce your pay for hours that are already on the books when you thought you were earning a higher pay rate. All they can do is tell you that they are cutting your pay moving forward.
The role of discrimination
Another important thing to consider is how the pay cut happened and what reason was given.
After all, the reason cannot be illegal. If your employer is discriminating against you, that could be a violation of your rights. Perhaps you recently converted to a new religion, for instance, and then they cut your pay. You believe it is simply religious discrimination.
Or perhaps you recently became pregnant, and you think your employer is cutting your pay in an effort to get you to quit your job. They may be trying to remove you from the workforce to avoid maternity leave, but they do not want to risk a wrongful termination lawsuit.
Finally, the pay cut cannot be retaliatory. Maybe you recently reported racial discrimination on the job, and your employer’s response was to cut your pay. That may be illegal retaliation for your report.
What are your legal options?
As you can see, a pay cut is likely legal, but it could be a red flag for other illegal activity. If this happens to you, it can help to work with an experienced attorney to explore your options.