Rate Change

Overview

This topic provides an overview of state law requirements concerning providing advance notice to employees when changing their pay rate or payday, which include changes to an employee’s hourly rate, salary, bonuses, commissions, vacation pay, or any other type of compensation. The federal Fair Labor Standards Act does not address whether or when an employer must provide notice to employees when changing their pay rate or payday. Therefore, only state requirements apply.

Questions Answered

• Is an employer required to give an employee notice of a change in pay?
• Is an employer required to give an employee notice of a change to the time or place of payment?
• What additional information is there regarding changes in pay rate or payday?