WE have a group of employees who are performing well below their expected performance level. Can we decrease the pay rate for all back down to what we would normally hire people in at and start over?

Unless there is a contract or a union, yes pay and benefits can be changed up or down.

Normally this will only cause more problems, often it is better to address the issue, with warnings and even termination of one to start, to get the others seroius.

Can I reduce an employee,s rate of pay?