[Pepper55]

I work for an Insurance Agent who has 25 years+ as a contract agent for one of the top five insurance companies in the United States. He has his own office and employs three people. He pays our salaries - we are his employees and we are not connected in any way with the parent insurance company.
In Sep 2006 when I was hired, I was hired at a set hourly rate and told that once I completed the State Of Illinois requirements for a license in all four lines of business and became an Insurance Producer, he would raise my hourly rate; .50 for the first two lines and .50 for the second two lines for a total increase of $1.00 per hour. Within three months, I passed the exams for all four licenses and he increase my hourly rate by $1 as promised. In July 2007, he said he would give me a merit increase in Sept 2007 on my one year anniversary. I did not get the promised increase - nor did I question him about it as I didn't want to cause friction between us (he is very sensitive and will make you apologize over & over for anything that hurts his feelings - even if you didn't know about it. He writes stuff down and will throw it in your face 3 months later... over and over).

On Nov 30th, he handed all three of us our paychecks with a very short note in it stating he was cutting each of our hourly pay by whatever amount was listed in the letter effective on December 1st (then left the office immediately).

I never received the merit increase he promised me in Sept - but he cut my pay by $1 an hour which reduced my pay to what it was the day I was hired as an unlicensed Insurance Producer. It was a lot of self-study to prepare and test to become licensed by the State of Illinois. When he cut my pay by $1 an hour - he put me back to where I was BEFORE I became licensed. I understand a boss can cut your pay - but I never received a merit increase or anything else - the only "increase" I received was the one I earned by getting licensed. Can he do that?

[Fr_Chuck]

Well I guess you could make him give you the raise and then the next week he can merely cut it back, in the end without a employment contract or union agreement, they can increase and/or decrease your pay any time they wish. So if he wishes to take away your increases he can do so. You of course since you have a full line license can go out on commission and sell insurance for a company direct if you wish, or change to another agent who may pay more.