Can My Boss Reduce My Work Hours With No Notice?

Whether you work full time or part time, you should expect to maintain a regular schedule. Most of us depend on our weekly or biweekly paychecks to pay our bills. It is more than frustrating when your employer cuts your hours out of the blue. It can be terrifying.

The question many people have is whether this is legal. Can your employer cut your hours without notice? Even if they give you notice, it still seems unfair.

Here, we'll explain your rights regarding the hours you work. We'll also briefly explain what you should do if your employer cuts your hours.

General Rules Regarding Reduction of Hours

Employment law governs your employer's ability to reduce your hours. Whether you have an employment contract or not, there are specific rules your employer must follow. For example, they cannot pay you less than the federal minimum wage. They also have to abide by the state and federal labor laws.

When it comes to your employer cutting your hours, many factors come into play. For instance, companies can legally cut the hours of nonexempt and at-will employees. They can also put these employees on furlough. However, in most situations, your employer must tell you (in advance) that they are cutting your hours.

The amount of advance notice varies from state to state. It also depends on your employment status. Finally, the courts would consider the issues the company is facing (such as closing down) and current economic trends.

Exceptions to Reduced Hours

The Department of Labor Wage and Hours treats certain types of workers differently. Essentially, there are two types of employees -- exempt and nonexempt. Exempt employees tend to work on salary. They aren't paid overtime and receive the same amount each pay period, regardless of their work hours.

Nonexempt employees typically work on an hourly basis. They receive pay for the specific number of hours they work. Employers must also pay nonexempt workers overtime if they work more than 40 hours per week/eight hours per day.

Exempt employees have a set salary and must receive their full pay. Even if a company has them work fewer hours due to a lack of available work, exempt employees will still receive their full pay.

This means that nonexempt employees are the only ones who would typically file a claim for unfairly reduced hours.

(Note: Union members or contract employees may also be exempt from reduced hours.)

The Worker Adjustment and Retraining Notification (WARN) Act

Federal law protects some workers from having their hours cut without warning. One such law is the Worker Adjustment and Retraining Notification Act (WARN). This law requires employers to give you at least 60 days' notice before they cut your hours. However, this law only applies when a company reduces employee hours by 50% or more.

The WARN Act rules only apply to certain companies and positions. Specifically, they apply to the following:

• Companies with over 100 employees
• Jobs that plan to reduce hours for six months or more

If you want to learn more about this law, read the complete employee guidebook on the WARN Act and your rights to receiving notice.

Your Rights to Unemployment Benefits

If your employer cuts your hours, you'll want to know whether you qualify for unemployment. This can be tricky. It depends on where you live. Every state has specific rules for who can collect unemployment benefits.

Whether you qualify for benefits largely depends on how severely your employer reduced your hours. For example, if you only lost one shift per week, it is doubtful that you'll qualify for benefits. However, you may receive partial unemployment if you lose more than 20%-25% of your hours.

It's a good idea to talk to an employment lawyer about this. They can check your state laws and help determine whether you qualify for benefits.

Defenses to Having Hours Cut

If your employer severely reduces your hours, unemployment may not be sufficient. You may have a wage and hour law case if the company violates your employee rights. If so, the government could fine your employer and issue penalties.

Any actions that violate the Fair Labor Standards Act (FLSA) could result in a legal battle. The FLSA states you have the right to:

• Fair wages
• Minimum wage
• Back pay for unpaid hours worked

However, the FLSA does not have rules about giving prior notice. This is another issue you can discuss with your attorney. There are protections in place, especially for full-time employees. However, these protections vary from state to state. It's best to seek legal advice before you decide how to proceed.

Employers Should Always Warn You About Reduced Hours

If you are an hourly employee, your employer can reduce your hours. In all but four states, workers are at-will employees. This means that, technically, your employer can reduce your hours or fire you at will.

However, even a small business with less than 100 employees must explain how the reduction in hours will affect you. In short, it's unfair for someone to show up for work and have their manager tell them to leave due to reduced hours.

Generally, your employer should tell you:

• Who the reduction affects
• The number of hours they are cutting
• How long the reduction will last
• If there are changes in pay

Contact an employment attorney immediately if the business owner doesn't provide this information. You don't want to wait until the last minute to seek legal advice. Ensure you keep records of your prior work schedule and paychecks. Your lawyer will need this to pursue any legal claim.

Steps To Take if Your Employer Reduces Your Hours Without Notice

Your employer must pay you for the hours you work. If you need help proving that they haven't paid you, an attorney consultation might be your next step.

To prepare for a wages or hour case, you should:

• Gather all evidence, such as emails, timesheets, pay stubs, company policies, and letters.
• Talk with your manager or human resources about the missing pay so you understand the details. Do not mention that you may take legal action.
• Speak with an attorney.
• Determine the next steps with your lawyer, such as a lawsuit or settling out of court.

Once your attorney reviews your information, they'll advise you on how best to proceed. Just remember -- you can only pursue damages for money you lost. The courts won't award you special damages unless your employer behaved egregiously.

Meeting with a lawyer can help you understand your options and how to protect your rights best. Visit our attorney directory to find a lawyer near you who can help.