Employment Law Questions? Ask an Employment Lawyer.
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Salary reductions are legal in the sense that if your employer reduces your pay and you continue to work, then you are considered to have accepted that offer and to be working under those terms. However, under the eyes of the unemployment laws you can quit for reason of a cut in pay of approximately 20 % and you would be considered to have quit for good cause attributable to the employer and qualified for unemployment compensation. That is the only remedy available to you however.
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You can accept it and keep working, counter-offer and see if they accept your counter, or quit with cause and collect unemployment.
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