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Exempt Employee Wage Reduction in CA - Legal?

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  • Exempt Employee Wage Reduction in CA - Legal?

    I am an exempt, salaried, full-time employee in California, working for a company of less than 50 employees. The company has suffered slowing sales and has laid off a number of staff in the past few months.

    I have been informed that the management feel I am grossly overpaid for my position, that I am not fulfilling the role for which I am being paid and that my salary is to be reduced (my benefits will remain the same). It is unclear as to whether I will be expected to continue with my current job duties, or if my role will be decreased, but I will remain a full time employee.

    I believe I am the only person this is happening to, but I am not sure. I do not have a contract, but do have a signed offer letter.

    Can the company do this? Do I have any rights?

  • #2
    An offer letter very seldom rises to the level of a bona fide contract, but you can have it reviewed by an attorney if you want to check for sure. Short of that, as long as they notify you ahead of time, and continue to pay you at least the minimum weekly salary for an exempt employee, I don't see any legal issue.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


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