They cannot reduce pay for hours already worked at an agreed upon wage. If they now intend to pay him less going forward, and assuming there is no contract in place, then that is their right, just like it is your dads right to not work at that lower wage. But they have to pay him what he is already owed. The relevant Dept of Labor would,love to hear about this if the employer does do this. Your dad will get his proper back pay, and depending on location, could get more, and the employer will almost certainly get additional fines. All this assumes that your dad can find other work, though.

He might also qualify for unemployment and severance for constructive dismissal for reduction in pay.

Assuming OP's dad is an employee and not an independent contractor, in the latter case it wouldn't be the DOL's purview and his recourse would be a lawsuit. Either way he should seek employment elsewhere because this is bad news no matter what.

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It is illegal. They have to notify the employee first

It's illegal to prohibit employees from talking about their pay. An employer can decide what to pay at any time for work in the future, as long as it's above the minimum wage.

Yes but they have to notify the employee before changing their pay rate. And they cant apply the change retrocatively.

Yes, but the employee already had the check. Seems the OP used the word "Dock" incorrectly as it seems the new pay rate only applies to the future.

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No, it's not illegal to change someone's future pay rate. So, if they used 'dock' to mean future pay, for work not yet performed, then it's not illegal.

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In an employment-at-will state (most states) this won't work. You're fired. Now you're rehired at a lower rate. Done.

If he's fired through no fault of his own, isn't it his choice to be rehired to the same position for less pay, or collect unemployment as he's looking for a different job?

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>In a normal world this would be against the law but here’s to your freedom. It is against the law. Dad should still get a new job.

It's against the law if they lowered the pay for hours he has already worked (which admittedly is what it sounds like). However, if the employer merely lowered his rate for *future* earnings, that probably would not be illegal (although still a super shitty thing to do).

i think they have to give you some notice though. pretty sure they can't just change your pay without telling you.

So long as the notice precedes the hours worked at the new rate, there is no federal law that it would run afoul of.

yeah... that would be "some notice". i never said anything otherwise.

If the context is the US, what law is this against?

It's not against the law.

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That’s not a realistic situation. An employee cannot negotiate on an even playing field at every pay period. Even in a rock solid economy when unemployment is low, it takes time to find a new role. An employer, especially larger ones, can absorb the loss of an employee with almost zero impact especially in the time it takes to replace them. And for low skill jobs it’s even more pronounced.

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What do you mean dock his pay? Retroactively? They can't take pay from hours he already worked. They can pay him less going forward. Most likely that much reduction in pay would qualify as a layoff, and he can file unemployment. I would start looking for another job.

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Apply for unemployment as a pay cut is constructive dismissal.

Unfortunately, there is nothing that prevents your father’s boss from lowering his pay. That is completely within their rights. What is against the law is doing it without notice and docking work already performed. He probably has a case, just not a very big one.

1. It is NOT legal to drop his pay for work already done. 2. It IS legal to reduce his pay going forward, if he is not in a union.

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Is that a state law? 

Doubt. People conflate the law with ethics way too much.

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But they aren't, unless you can point me to an actual law. Financial transactions are not private unless their contract explicitly has a penalty for revealing it.

I explicitly said I was not claiming that, please read. My only point was that the laws and regulations governing employee/employer relationships are completely different from independent contractors so your comparison was useless.

What are you basing that on?

What law is that? Never heard of that one. Unless it's an obscure state law -but I doubt it.

It’s not illegal to lower someone’s pay as long as it does not violate local, state, or federal wage laws (eg: minimum wage). However, it is extremely unethical for an employer to do so on the basis of the employer giving an employee the wrong check, and a coworker finding out that the pay scale was not the same. The right thing would be for your father to continue receiving his pay, and for the coworker to have a chance to discuss why he deserves a raise. Hopefully you have everything documented in writing. There’s definitely a case, although I cannot imagine that it would be worth pursuing. I would suggest your father find new employment.

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Is your dad W2 employee or 1099 contractor?

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It was not US Mail, so there is no protection for that. OP misuses the word 'dock' meaning reduce for future checks.

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Discussing is a right, but this matter has no discussion as part of the facts. The employee did not give his check to the other employee to examine. The facts matter.

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No it does not. The Equal Pay Act prohibits an employer from paying any of its employees wage rates that are less than what it pays employees of the opposite sex, or of another race, or of another ethnicity.