Legal Question in Employment Law in California

Re: Sales associate contract

Based on the information you have provided us, the fully executed contract is binding. Without seeing the contract, we cannot advise whether the salary can be lowered in the future. Typically, there is no written contract and the employer is free to change salaries as it pleases. Presumably you have a defined term in the contract which would provide the initial parameter of what your salary should be (e.g., from December 2007 to December 2008 if it is a 1 year contract). But it could contain language allowing the employer to change the salary at its whim. Again, we would need to see the contract. You could possibly wait until the expiration of the initial period and then make a claim for the difference in what they should have paid you. If it ends up in litigation, they would argue that you waived the difference by accepting the lesser salary. I do not not think that defense will hold up, but that would require some legal research. They could also terminate you if there is a provision in the contract that you are an "at-will" employee. I would be surprised if that language was not in the contract. Even if you have the legal right to enforce your contract, they still have the legal right to terminate you at any time for any reason (so long as it is not an illegal reason - such as a reason based on your race, sexual orientation, marriage status, etc.). So you have to decide whether to rock the boat. Sometimes employers will terminate you and then settle once your lawyer gets involved. In other instances, they may be fearful of litigation if they are contacted by your lawyer and will not discharge you. Perhaps you may know their inclination from past history. If you would like us to review your contract, feel free to contact our office.