[nkohari]

> Your employer cannot arbitrarily reduce your salary. The reduction has to be agreed upon by the employee or the employer has to terminate employment and rehire to reduce salary.

There might be state regulations to this effect -- and IANAL -- but there's no such federal law in the US. An employer can cut an employee's pay at any point to any value above the minimum wage, as long as they inform the employee their pay has been cut.