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View Full Version : Any laws about lowering a salary in CA?


LAsalesman
03-30-2006, 10:57 PM
My company has restructured our pricing and taken away some of my accounts. I'm now in a position where I'm not meeting goals that were set up with different pricing and different goals. I'm paid as exempt (Which I don't think is right, but not my question) at a salary of a little over $31K. Can they lower my salary whenever they want? I assume they can't drop it lower than $28,080 or whatever the minimum is. Am I correct?

If they decide to fire me, would I be able to collect ec? I think the company is having financial trouble and they are trying to get me to quit, but they changed the structure (I'm the only person in my division) so it looks like I'm not performing although I do the same work that I have for 11 months.

mtracy
03-31-2006, 09:07 AM
As your name is "LAsalesman," I will assume that you are some type of salesman. Thus, there are really only 2 possible senarios for you: inside sales and outside sales.

It depends how you are exempt. If you are exempt because you are an outside salesperson, then there is no minimum salary. They can pay you $1 a year and it is legal.

If you are exempt because you perform inside sales, then there is still no salary requirement. They only have to pay you 1.5x minimum wage and 1/2 of you compensation must come from commissions.

LAsalesman
03-31-2006, 09:45 AM
I have never made 50% of my income as commission, so I'm not exempt as far as that goes. I think they are stretching the terms of the administration exemption.

Is it possible to collect ec if you quit a job? I feel as if I'm being forced out.

LAsalesman
03-31-2006, 09:46 AM
Sorry. I'm inside sales.

Pattymd
03-31-2006, 09:58 AM
I'm assuming by "ec" you mean unemployment benefits. If you quit, it is not likely you will receive benefits. However, we have no way of knowing what the adjudicator would decide.

LAsalesman
03-31-2006, 11:23 AM
Okay, I guess maybe my question is, is there any law that stops an employer from decreasing salary if it stays above minimum and also, is there anything that can be done legally if they try to change me from full time to part time to decrease pay that way?

mtracy
03-31-2006, 11:38 AM
There is no way that inside sales would qualify as the administrative exemption. Not even if they stretch it. The exemption specifically excludes all sales activity.

In terms of unemployment, it is extremely difficult to turn a voluntary quit into a termination. You basically must show that you exhausted all possible solutions to remedy the problem. Short of having a court order which they are refusing to follow, this can be difficult to prove.

In terms of your salary, there is nothing that prevents them from moving it to minimum wage. There is also nothing that prevents them from moving you to part-time.

LAsalesman
03-31-2006, 12:28 PM
I am just sales and don't supervise anyone. I shouldn't really be exempt, right? What trouble could they be in? Would they just have to go back and pay overtime?

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