Can an Employee Take a Pay-Cut Without It Being in Writing?

Two employees worked for a firm in Southern New Hampshire. They had had a written contract that provided a certain percentage for commissions. For three different quarters in a year, the percentage they were supposed to have been paid was reduced by $30,000 each quarter and then in the 4th quarter by $35,000. The employees objected to the modification of their commission from 40% to a lower number and the change was never reduced to writing. The employer argued that because the employees did not quit, they must have accepted his modified deal, however, the Department of Labor held that although an employee can leave at any time, they should not be forced out by changing the conditions in their wage package without having it in writing signed by the employee. Each employee was awarded $125,000 by the New Hampshire Department of Labor.

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