Your boss does technically have the right to reduce your pay. This may feel unfair to you as an employee when they inform you that your pay is going to be reduced. But just like your boss is able to give you a raise if the company has the money to do so, they could also cut your pay rate.
That said, there are still ways in which your pay reduction may be illegal and may be a violation of your rights. It is important to understand how this works, so let us take a look at two examples.
If it applies to hours you already worked
First off, for any hours that you have already worked, you deserve the pay rate you believed you were receiving when you worked those hours. Your boss can only reduce your pay in the future.
For instance, maybe you worked eight hours yesterday at $20 an hour. If your boss tells you that those hours are now going to be paid at $17 an hour, that may be illegal. But if they tell you that you will be earning $17 an hour starting tomorrow, that is probably permissible.
If it is due to retaliation or discrimination
Finally, it is important to consider the reason for the pay reduction. If it is retaliation for something that you did, such as reporting sexual harassment or a hostile work environment, that could be illegal. If the pay cut is based on discrimination, such as reducing your pay due to your religion, race, gender or pregnancy status, that also could be illegal. So just because your boss has the right to reduce your pay does not mean they can do it for any reason at all.
Do you believe that your rights have been violated as an employee? Take the time to look into all of your legal options moving forward.