Legal Question in Employment Law in California

Demotion & Salary Cut

I started working with a ortgage broker on 7/5/2005. I was hired as a senior loan processor with a starting pay of $23.01. I signed an aggrement that stated I would be under a 90 day probation period at this amount. The Broker decided to Re-Hire the Senior Processor Back that had quit and I was put into another position with out knowing this was takig place. My Income was dropped to 18.00 per hour within the pay period 8/17/2005. I have not siged any ammended paperwork and there is a copy of the change in my files. It 8/17/2005 effective date of salary change and reason for change is Job Re-asignment The office manager has signed the copy however I did not sign my signature of consent but I have a copy of the changes. My boss also asked if he could lay me off this moth because there was not enough to do however I told him it was not wise to do so because I had already been handled and treated unfairly. Is this legal? and can you hire someone for a position and make changes to a contract that agree to have me on a certain salarly for 90 days?


Asked on 9/27/05, 4:31 pm

1 Answer from Attorneys
Patrick Turner Patrick E. Turner Inc. APLC

Re: Demotion & Salary Cut

You may have an enforceable contract for a period and at a certain rate, and you may not. An attorney would need to review the contract and its language to determine whether it is enforceable. If it's an enforceable contract, the employer would be required to pay you a specified rate for the full 90 days. After that, you would likely revert to an "at will" status, which means that the employer could alter the terms and conditions of your employment at any time, and including rate of pay, job duties, and even termination. In other words, after the 90 days were up, the employer could lay you off. It would be well worth your while to make an appointment with an attorney in your local geographic area and show the attorney the document you signed at hiring to determine its enforceability. Another factor to consider is whether you were induced to lead a better position than the one you ultimately will put into; this may give rise to a fraud claim.

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Answered on 9/29/05, 5:55 pm


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