If your employer announces a reduction in your hourly rate but ensures it stays above the Massachusetts minimum wage, they are within their rights. However, if they pay you the new rate for hours worked at the old rate, they violate the Wage Act, and they must compensate you for the difference.
Sometimes, employers might not formally announce a pay cut but pay you less than the agreed wage. This too can be a violation of the Wage Act.
Keep a close eye on your compensation, particularly if it includes commissions. Employers often modify commission policies, and there may be a delay between earning a commission and receiving payment. Any changes should ensure you're paid the old rate for commissions earned before the change.
If a pay cut violates the Wage Act, your employer could be liable for treble damages, amounting to three times the owed amount, if you file a claim and prove the debt. Additionally, they must cover your costs and expenses, including attorney fees. Learn more about pay reductions by visiting us at employer reduction in pay.