Legal Question in Employment Law in California
Is it legal for a company to take away your raise once minimum wage increases? For example, the company I work for is going to start paying everyone $10 an hour starting January due to state law raising minimum wage to that but for the people who are making over minimum wage right now, say $9.50 (while minimum wage is still $9), will soon be back to just minimum wage ($10)
1 Answer from Attorneys
What makes you think the law would entitle you to $1.00 an hour more than you are worth to your employer just because the law has already forced your employer to pay you $0.50 more then you are worth to your employer as of 1/1/16? Just exactly how is forcing your employer to give you a $0.50 raise taking away the $0.50 raise you already got? To your employer you are apparently worth $9.50 an hour. If you're not going to be grateful you should at least count yourself lucky that the government has decided to force your employer to give you another raise to more than your work is worth.
Bottom line: It is perfectly legal. No employer is required to pay more than minimum wage. Any employer can even cut your pay at any time as long as they keep it at or above minimum wage, and pay you your old rate for any work you do before they notify you of the pay cut.