Legal Question in Employment Law in California

Re: Contractor to full time: retroactive pay decrease?

You have asked a good question and brought up sevearl good issues. You have a contract as well as wage issues. Your employer must comply with the contract and once the contract has ceased, comply with wage laws of the state in which you are conducting labor. An employer cannot accept your labor without paying for your labor.

If you wish to discuss your matter further, you may contact my office or contact the California Labor Commissioner to assist you with the labor law side of the matter. Best of luck.

Sincerely, Beth Mora

Re: Contractor to full time: retroactive pay decrease?

If it is true, as your boss admits, that you were improperly classified as an independant contractor, then they have already violated state and federal tax laws, as well as others (no workers comp. insurance, labor laws, etc.). Now he is looking to compound the error by violating additional laws by making you work for free.

Whatever the fee agreement was for your services, previously, is a done deal. He cannot now retroactively apply what was previously paid to you toward future work. Of course, he doesn't have to continue to employ you either.

There are ways to deal with these situations, but they are fact specific and this forum is probably not the best way to advise you because more information is needed. But I would be wary of continuing the employment relationship with an employer that knowingly does not comply with the law and admits it, then wants to compound the problem by violating more laws.

Re: Contractor to full time: retroactive pay decrease?

The real question as far as the past is concerned is whether you have actually been an "independent contractor" for the past 5 years. This is determined based on a many-factored test and basically comes down to how much control they had over you during that time. If you were actually an employee during this time (in the eyes of the law), you may have substantial claims for back wages, such as overtime compensation.

As far as going forward is concerned, all employees in California must receive wages for the work they do. If you are paid on a salary basis, you must receive a salary for each week in which you do any work. They cannot just say "you've been paid" and not pay you any money. At the very least this is a minimum-wage violation.

I would be happy to speak with you further on these issues. We do a substantial amount of work in California.

Re: Contractor to full time: retroactive pay decrease?

Tell him 'nice try, but no brass ring'. The past is passed. Any change affects only the future relationship. He doesn't get to make you work for free, and you can pursue a claim through the Labor Commissioner if he tries. Contact me if it tries, or you are fired for opposing it.