Legal Question in Employment Law in California
Lowering hourly rate for insurance increases
Received raise of 1.48 which made 40.07 an hr from 38.57 in July, made the 40.07 an hour for about a month then the compnay took back the raise and said it was because the health insurance premiums had gone up so much because of age. Is this legal? As far as we know everyone else makes 40.07 an hour. They say it is tied to a California Prevailing Wage labor law. Can you tell us how this works. Thanks, --name removed--
1 Answer from Attorneys
Re: Lowering hourly rate for insurance increases
This is an interesting issue. We know health premiums go up with age. But to deny an employee a raise specifically because of their age appears to be discriminatory, thus, illegal. Particularly, if it turns out everyone else younger than you is being paid a higher wage. This needs to be looked into. If the employer won't address your concerns to your satisfaction, either file a complaint with the California Department of Fair Employment and Housing within a year from the wage reduction, or seek assistance from an experienced employment lawyer attorney in your area.
The prevailing wage relates to the minimum wage employers must pay employees who work on government contracts. It is not clear what they mean by saying your wage is tied to that.