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Boss cutting wages for no reason California

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  • Boss cutting wages for no reason California

    Is it legal for an employer in California to cut an employee's wages for no reason?? My employer intends to cut all hourly employees pay by 20%. This is NOT due to poor employee performance; it is simply cost cutting.
    They have already eliminated vacation pay, holiday pay, and health insurance.
    Is this legal?? HELP!

  • #2
    Unless you have a bona fide, legally binding contract that specifically says otherwise, yes, it is legal.

    The only qualifiers are that they cannot take you below the higher of state or Federal minimum wage, and in most states, including yours, you must be notified of the cut before you work any hours at the lower rate. As long as those rules are followed, wage cuts are legal in all 50 states.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Agreed with the last answer. Past that:
      - CA MW is $8/hr/
      - While future vacation accrual can be eliminated in CA, the existing balance cannot be. CA vacation balances already earned are legally vested. You can file a wage claim with CA-DLSE if this has occured.
      http://www.dir.ca.gov/dlse/FAQ_Vacation.htm
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        Just wanted to add; in the current economy, cost cutting is NOT "no reason". Some companies are having to cut costs to the bone in order to stay in business. Myself, I'd rather have a pay cut than have my company close down.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          I agree with cbg...I would rather have my job than to be looking for one that may not exist right now in this economy! Be thankful that you still have money coming in...there are others out there that would be glad to be in your place instead of jobless.

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