Q: Can a company reduce your pay rate and hours so they don't have to pay the correct overtime rate?

A: Your question lacks enough specificity to give you a reliable answer. Your employer has the right to change your pay rate as long as the reduction does not bring the rate below the minimum wage, and as long as the change is made only after telling the employee the rate is being reduced. Overtime premium is paid based on the regular rate of pay.

It is hard to understand your question. The employer can reduce the pay rate so that they do not have to pay a higher overtime premium, again, as long as the employer informs the employee of the change before the work is performed.

Good luck to you.

A: The Company can Absolutely not reduce your pay rate after your hours have worked in order to reduce your overtime pay rate. After you work the hours, you are entitled to the regular rate of pay times 1.5 for all overtime hours worked, and there are laws that prevent the employer from adjusting your pay rate so that the amount you get supposedly covers all regular and OT hours. Your facts are not really clear in how the company is doing this, but if you are working 70 hours a week and your regular rate of pay is $13.50, you should be receiving $1147.50 per week before deductions. If you think your employer is stealing your wages (which is what they are doing under the facts you gave) you can contact an Employee's Rights Attorney or go to the Labor Commissioner to file a wage claim on your own. Some attorneys will handle your case on a contingent fee basis and get paid after you recover. You can calculate your unpaid wages by using a Form DLSE 55 found on the Department of Industrial Relations website. If you want to hire an attorney, you should see if you can get some other employees to join you to make a claim, you will be more likely to get a good attorney if you have 4-5 people making a claim.

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