Unless you have an employment contract or are covered by a bargaining agreement, your employer can cut your pay and/or cut your work hours. That's because most employees are considered to be hired at will.
Employment at will means that when workers don't have a formal employment contract or are covered by a bargaining agreement they can be terminated, demoted, have hours reduced or pay lowered at the company's discretion.
On an interesting twist on pay cuts, there are people who are more than willing to take a pay cut to keep a job or to get a new one. Aash is willing to take a 50% cut in pay if only he could find a job. Mike offered to go part time and take a $25,000 pay cut to keep his job. They laid him off anyway.
How about you? Would you take a pay cut to keep your job or would you prefer to be laid off?
Read More: Pay Cuts