Attorney advertisement by Edwin Aiwazian of Lawyers for Justice, PC, headquartered at 410 Arden Avenue, Glendale, CA 91203
In California, employers can reduce an employee’s pay, but there are important legal restrictions and requirements that must be followed. Pay reductions must comply with state labor laws and usually cannot be done retroactively.
Notice Requirements
- Advance Notice: Employers are required to give employees advance notice before implementing any changes in their rate of pay. Typically, this is done through a written notice at least 30 days in advance. Any reduction in pay must be communicated clearly, and it cannot affect hours that have already been worked.
Minimum Wage Compliance
- Minimum Wage Laws: Even if an employer reduces employee pay, the new rate must still comply with California’s minimum wage laws. As of 2024, the minimum wage in California is $16 per hour for employers with 26 or more employees, and $15 per hour for smaller employers. An employer cannot legally reduce your pay below minimum wage.
Contractual and Collective Bargaining Agreements
- Employment Contracts: If an employee is working under an employment contract, or is part of a union governed by a collective bargaining agreement, any changes to pay must comply with the terms of the contract. A pay cut under an employment contract may require negotiation or consent from the employee or union on the new pay rate.
Prohibited Reductions
- Retaliation and Discrimination: If a pay reduction happens as a form of retaliation or discrimination, that is typically illegal. For example, an employer cannot lower your wages, or make pay cuts, because you filed a complaint about unsafe working conditions or participated in a protected activity, such as reporting harassment.
Remedies for Illegal Pay Reductions
If an employer reduces an employee’s in a way that violates California law, they can:
- File a wage claim with the California Labor Commissioner.
- File a lawsuit with the help of an employment law attorney for lost wages, penalties, and potentially other forms of compensation.
Can An Employer Reduce Your Pay? – FAQ
can an employer legally reduce employee pay? Typically, employers can reduce the compensation of their employees’ for any reason, as long as it’s not illegal and the new pay does not violate California’s wage and hour laws.
can an employer cut your pay as punishment? Employees have the right to receive compensation for all hours worked, regardless of their work quality.
can an employer reduce your hourly rate of pay without notice? California law requires that for non-exempt employees (except those covered by a collective bargaining agreement), a written notice must be signed by the employee if there is an employee’s wages change. The notice should state the applicable rates of pay changes. If a change in pay is reflected on the next payroll period of a worker’s wage statement, then no additional notice needs to be given. For a salaried employee, employers should give written notice of the change.
what to do when your employer cuts your hours? Employees might be able to sue for salary reductions of the pay cut conflicted with an employment contract, or the employer cut pay beacuse of discrimination.
can a job lower your pay if you switch positions? Yes, employers can generally change an employee’s salary if the nature of their job duties change. Usually, employers cannot be sued for paying workers less for doing a different job.
can my employer change my pay structure without notice? California state law typically requires employers to give non-exempt employees notice of any changes to their pay. However, if the change in pay is reflected on their next wage statement, then no additional notice is required.
can i be forced to take a pay cut? Employers do have the discretion to reduce hourly pay and salaries as easily as they can raise them. However, employees must be paid their original rate for all the hours they already completed.
can an employer lower your pay in california? Yes, it is legal for employers to issue pay cuts.
can my boss cut my hours without notice? In most California workplaces, employers can change employee work schedules without notice.
if you are a full-time employee can they cut your hours? Unless you are protected by a union contract or employment agreement, your employer can usually legally fire you, demote you, or change your work hours at any time, for any reason.
if you get demoted does your pay decrease? It depends on the nature of the company and the positions, but usually demotions could mean wage reductions.
can you demote an employee without warning? Generally, yes. However, if you feel you were demoted because of discriminatory reason, you may be able to seek compensation with the help of the employment lawyer team at Lawyers for Justice, PC.
can employer change benefits without notice? According to the California Department of Industrial Relations, “an employer who provides employee medical benefits and discontinues those benefits must provide employees with written notice at least 15 days in advance of the discontinuance of coverage.”
can my employer cut my hours and give them to someone else? Usually employers have flexibility in managing and rearranging employee schedules and work hours, as long as they obey anti-discrimination laws and contractual obligations.
can your employer cut your hours? Yes, typically an employer can cut your hours, as long as they do not violate discrimination laws or employment contracts.
can employers take money out of your check? Employers may not take out any deductions from a workers’ paycheck other than applicable taxes and court-ordered payments. Anything else requires your written authorization.
can you be demoted for no reason? Typically, yes.
can an employer cut your hours to make you quit? If you think your employer is treating you improperly, contact Lawyers for Justice, PC for a free consultation.
can an employer deduct pay without consent? Typically, no.
can a company change you from salary to hourly? It is technically legal to reclassify employees as hourly workers, but employers should document the process. To maintain FLSA compliance, employers must show the Department of Labor’s Wage and Hour Division when and why they made the changes.
