Employment Law Questions? Ask an Employment Lawyer.
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Unfortunately, unless you had a contract guaranteeing your prior salary for a set period of time (which few employees do), the reduction and change in compensation structure is not illegal. The reason is because absent such an agreement, employment is presumed "at will," and as such can be terminated at any time. Since your employer could simply fire you and then hire you back pursuant to the new terms of employment, they can simply change the terms of your employer to accomplish the same thing. I'm afraid that all you can do in these circumstances is attempt to negotiate something better. If the terms of employment are no longer acceptable to you, you are of course free to seek alternative work elsewhere on better terms.
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