My boss outsources a company without anyone knowing and leaves me out claiming there is no work. Is this legal?

Question

For weeks now I work 1 or 2 days in a week. I recently found out that my boss hires people from another company to do my job. He tells me there is no work however the team he contracts get their 40 hours. I’ve also lost money a couple of times when I worked double time and traveled by him paying me cash claiming payroll was down. The amount was much less than what my pay should have been when you factor in time and a half and double time. I work in a specialty cleaning for hospitals so we are contracted on jobs we bid.

Neil Pedersen · Answer

There is nothing unlawful about an employer outsourcing an employer's job duties unless the motivation for doing so is your membership in a protected class of people or because you engaged in some form of legally protected conduct.  The AI "assisted" answer by Mr. Arrasmith is simply not a correct statement of law.  AI is not all it is cracked up to be. Even this posting attorney says at the bottom of his fine print disclosure an another Q&A site says “PLEASE DO NOT RELY ON THIS ANSWER. It may be incorrect, and I do not guarantee its correctness...artificial intelligence is oftentimes incorrect and should certainly not be relied upon in any way, shape, or form.” I could not agree more. 
 
As to some of your other issues, there appear to violations of the California Labor Code that should be addressed.  I suggest you locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options.  I would suggest you look either on this site, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers. 
  
Most employment attorneys who practice this area of law offer a free or low-charge consultation and then if the matter has merit and sufficient value, they work on a contingency basis, meaning you can hire an attorney without paying any money until the matter results in a positive outcome for you.  Many advance all the costs of the litigation as well.  Do not let fear of fees and costs keep you from finding a good attorney. 
 
Good luck to you.

James L. Arrasmith · Answer

This situation appears to involve several potential labor law violations in California that you should take seriously. Your employer's actions of reducing your hours while outsourcing your work could constitute constructive dismissal, which is illegal when done to avoid paying wages or benefits. 
 
The issue with cash payments below the required overtime rate is particularly concerning, as California law mandates strict overtime calculations - time and half for hours worked beyond 8 in one day or 40 in one week, and double time for hours beyond 12 in one day. Your employer cannot avoid these requirements by claiming "payroll is down" or paying in cash. 
 
You should document everything thoroughly and consider filing a wage claim with the California Labor Commissioner's Office. Additionally, you may want to consult with an employment lawyer who can review your specific situation - many offer free initial consultations. You can also report these practices to the California Department of Industrial Relations, as they handle workplace violations and can investigate your employer's actions.

Q: My boss outsources a company without anyone knowing and leaves me out claiming there is no work. Is this legal?