Legal Question in Employment Law in California
Employer changing hourly rate
I am an instructor for a computer training company. None of us are credentialed by the State. We used to be salaried, but our employer changed us to hourly, claiming our positions didn't qualify us to be salaried. Recently, our employer lowered everyone's hourly rate by 25.72%, having us make up for the amount by filling out 50 hour per week (rather than 40 hour) time cards. The amount of hours we actually work is variable, sometimes more than 50, sometimes less than 40. The problem is, if we DO work any true overtime (over 40 hours), it is at the reduced rate. A colleague of mine was a witness in a similar case, and the judge said the employer cannot lower the wage in this manner. Is any of this legal, and if so, what are the implications down the road, and how can we protect ourselves?
3 Answers from Attorneys
Re: Employer changing hourly rate
Your employer cannot change your hourly rate to force work over 40 hours per week requiring employees to work OT to make up the difference.
What is more important here is that you and your fellow employees would be entitled to back pay for your overtime over 40 hours per week for the time prior to changing you to hourly. You and your fellow employees are losing money daily for each day of delay in seeking this back pay. Please feel free to contact me immediately to discuss your options.
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Re: Employer changing hourly rate
You protect yourself by either resolving it directly with the employer, or filing an unpaid wage claim with the Labor Commissioner. If you need legal counsel to help, or if you are retaliated against, contact me.
Re: Employer changing hourly rate
Your employer can lower your hourly rate. He must, however, pay you overtime. In CA you must be paid overtime for working more than 8 hours per day and/or 40 hours per week. Since it appears an at-will employment, certainly it may be of interest to you to find a new position. If enough of you do this, your employer may learn the true value of loyal employees.