An employer has the legal right to reduce an employee‘s pay and cut their hours, unless there is a collective bargaining agreement or employment contract in place. If a contracted employee experiences a pay cut, they have the right to seek legal recourse with the help of an employment lawyer. At-will employment allows employers to make these changes without warning or explanation, and employees are often required to acknowledge this fact in writing. If an employee believes their pay was reduced due to discrimination, they should seek legal counsel from an employment lawyer familiar with employment law.