Legal Question in Employment Law in California
Change to compesnation plan
I am a W2 employee paid on an hourly draw with bonuses. On June 28th, my employer changed our bonus plan from a forgivable draw to an 'unforgivable draw' that carries over from month to month. This June 28th comp plan was back dated so that June 15th hourly check would be 'unforgivable' and deducted from the following months bonus. Can you back date a compensation change like this?
2 Answers from Attorneys
Re: Change to compesnation plan
No. Retroactive changes are not allowed if it reduces your pay. You could file a claim with the Labor Commissioner for unpaid comp.
Re: Change to compesnation plan
It is my opinion that the bonus you speak about is actually compensation that no longer is discretionary. if your employer agreed prior to performing the work that the draw would be forgiveable and subsequently changes the rule making the draw unforgiveable, this would essentially be a loss of wages.
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