Santa Cruz, CA asked in Employment Law for California

Q: My employer had my wage at 15/hr, then reduced it and subtracted the “overpay.” Is that legal in California?

This is a small business, so minimum wage is set at 14/hr for the size of the business.

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3 Lawyer Answers

A: As long as your hourly rate does not fall below the applicable minimum wage, this is permissible. However, if the subtraction of the "overpay" brought your equivalent hourly rate below minimum wage, this is a violation.

Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: As I understand your question, you were paid at the rate of $15.00 per hour for a period of time, then your employer reduced it to $14 per hour. This is permissible. What is not permissible is for the employer to retroactively apply the reduction to work that you previously performed and were paid for. So if your question asks: "If I earned $15 per hour in Jan. can the employer take back $1 per hour in March?" the answer is NO. The reduction can only be prospectively applied unless you are working for a governmental agency, then they do whatever they want. Suggest you consult with your local attorney or Labor commissioner's offices.

Brad S Kane agrees with this answer

Brad S Kane
Brad S Kane
Answered
  • Los Angeles, CA
  • Licensed in California

A: Your employer may not retroactively reduce your pay. Further, your employer must give you advance notice before reducing your pay.

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