They get paid for the previous work they have done (two weeks, half month, one month, depending on pay period).

That’s theirs.

But going forward, they don’t have any right to any level of pay above minimum wage.

I’ve personally dealt with this. I had an employer run out of money and be acquired by a new company. The new company owes paychecks for last pay period, but wants to pay everyone lower salaries.

Going forward the new company could pay whatever (above minimum wage). But they owned all the debts of the previous company including that last months wage.

We only had at will hiring agreements, but that didnt matter.