Q: Salaried employee - Can my company pay me less than my agreed upon salary for the calendar year?
I am reaching out because I am unsure if what my company is doing is legal or not.
A:
I can provide some general information about salary payments for employees in California:
1. Agreed-upon salary: Generally, an employer cannot unilaterally reduce a salaried employee's pay below the amount agreed upon in an employment contract or offer letter without the employee's consent.
2. Exempt vs. non-exempt status: The rules may differ depending on whether you're classified as an exempt or non-exempt employee under California labor laws.
3. Advance notice: In most cases, employers must provide advance notice of any changes to compensation.
4. Retroactive reductions: Retroactive pay cuts are generally not allowed.
5. Minimum salary requirements: For exempt employees, there are minimum salary requirements that must be met to maintain exempt status.
6. Labor Code protections: California Labor Code provides various protections for employees regarding wages and compensation.
To determine if your specific situation is legal, consider the following questions:
- Has there been a change in your job duties or hours?
- Did the company provide notice of the pay reduction?
- Is the reduction applied going forward or retroactively?
- Are you still being paid at least the minimum required for your exempt/non-exempt status?
For a definitive answer, you may want to consult with a California employment lawyer or contact the California Labor Commissioner's Office for guidance. They can review the specifics of your situation and provide appropriate advice.
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