If an employer cuts an employee’s pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee’s race, gender, religion, and/or age). To be legal, a person’s earnings after the pay cut must also be at least minimum wage .
Can an employer legally reduce your pay?
In many cases, it is legal for employers to reduce the hours or pay of employees. ... Unless you work under a collective bargaining agreement or an employment contract, your employer is generally allowed to cut your hours and pay . However, there are some situations in which reductions in work hours and pay are illegal.
How much can an employer reduce your pay?
An employer can reduce a non-exempt employee’s salary as long as the employee is compensated at no less than the California minimum wage . In addition, the employer must compensate the employee for any overtime at no less than one and one-half (1 1⁄2) times the minimum hourly wage.
Can an employer cut your salary in half?
Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee’s race, gender, religion, and/or age). To be legal, a person’s earnings after the pay cut must also be at least minimum wage.
Can my employer demote me and reduce my pay?
California is an at-will state so employees can be let go from their job for almost any reason. ... While not exactly a demotion, your employer is within their right to change your job title, alter the description of your job duties, or even lower your salary .
Can I refuse a pay cut?
By law, employers cannot unilaterally cut an employee’s pay . No one can force you to take a pay cut, so you could reject such an offer even if your fellow workers accept.
Is there a limit to how many hours a salaried employee can work?
The federal law doesn’t restrict how many hours you can be required to work in a day, although some state laws do. Hourly employees and non-exempt salaried employees must be paid overtime if they work more than 40 hours in a week .
Can I get fired for asking for a demotion?
When Employees Can Be Demoted It means that your employer can discharge you or demote you for any reason other than discrimination or whistleblowing. So if your employer believes that your performance is lacking in any way , you can be demoted, and your pay or hours can be reduced.
What should you do in case of unfair dismissal?
What to Do. If you believe that you have been unfairly dismissed from your job, contact the US Department of Labor for more information regarding your particular situation. It is also wise to talk to a lawyer immediately , as there is often only a small window of time for you to take legal action.
Can you sue for wrongful demotion?
Can You Sue for Wrongful Demotion? Yes . If you were wrongfully demoted by your employer, then you should consider pursuing legal action. However, depending on the circumstances, you may have to file a complaint with the California Department of Fair Employment and Housing (DFEH) first.
Can my employer take hours away from me?
Unfortunately, employers can typically reduce your hours since most employees are “hired at will,” which means that they aren’t covered by a formal contract or bargaining agreement and can be terminated, demoted or have their hour reduced at any time at the company’s discretion.
What to do when your employer cuts your hours?
- Unless you have an employment contract or bargaining agreement to protect you, your employer can reduce your work schedule at any time.
- Try negotiating you contract to freelance on the side, find a new job or ask for better benefits to make up for the lost hours.
Can my boss take back my raise?
An employer can’t take back an employee’s raise if there’s an existing employment agreement that sets out compensation and the amounts and terms of salary increases. ... Taking back a union member’s increase would be in violation of the collective bargaining agreement.
Is it illegal to work 80 hours a week?
Under California labor laws, non-exempt employees shall not work more than eight (8) hours in any workday or more than 40 hours in any workweek unless they are compensated with overtime pay. ...
Can an employer make you work 80 hours a week?
Labor laws in the United States give employers ample latitude regarding scheduling. Employers essentially can have employees work any number of hours , including 80 hours per week or more, and employees’ only recourse if they do not like their schedule is to find other employment.
Is salary better than hourly?
Salaried employees enjoy the security of steady paychecks, and they tend to pull in higher overall income than hourly workers. And they typically have greater access to benefits packages, bonuses, and paid vacation time.
