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Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33167
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
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last week company in orange county calif said all employees

Customer Question

last week company in orange county calif said all employees must help share the burden with the struggles of the company that all employess hourly salaried would get a pay deduction and the degree of the deduction would be based on how much your made example (cut could be anywhere from 10% to 50%).

now we are finding out the company lied and did not give every employee a pay cut.

can they do this?

is this against labor laws in ca.

thank you
Submitted: 5 years ago.
Category: California Employment Law
Expert:  Tina replied 5 years ago.
Hello and welcome,

Is there any reason to believe the employer discriminated against some employees based on race, gender, age, disability, or other protected status?

Customer: replied 5 years ago.
this is not fair i just want to know if i should go to the labor board
Customer: replied 5 years ago.

is anyone going to respone


Expert:  Tina replied 5 years ago.
I understand why you believe it is not fair. If there is no reason to believe the employer engaged in unlawful discrimination or retaliation though, such that the employer singled out employees based on a protected status to receive larger pay reductions, there would be no basis for seeking legal action against the employer typically.

As employees at will, the employer is normally permitted to change the terms of employment at any time, including modifying employee wage rates as long as they are reduced below minimum wage/overtime laws.

If the wages were reduced below those requirements, then the labor board could take action and a claim should be filed with that agency.

If unlawful discrimination was involved, then a claim should be filed with the state fair employment and housing commission by the affected employees.

Finally, for those employees whose pay was reduced by 20% or more, they would typically refuse this new wage rate offer, quit their employment, and collect unemployment benefits.

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