It's interesting that they emailed the new salary rather than discussing it in person with you -- I haven't run into that. Unless you are in an industry where contracts are the norm, I would not be surprised at the lack of a contract.

Unfortunately, at most companies, especially small ones, what you start out at usually has a huge bearing on your future earnings. This can be very limiting. Accepting a job, even an entry level job, at less than the market rate can mark you for your life at that company.

How much did you expect to be paid? Are there any benefits in addition to the wage? Could you get another job somewhere else and be paid more?

It's really hard to say whether or not the $14 is fair without knowing the industry or location. Where I live, that would be a fairly standard starting salary for a new grad, but we have crappy wages.