There`s no law that says you have to get a raise every year – or a bonus. While state minimum wages sometimes change and employers must comply with these laws (the federal minimum wage hasn`t changed in more than a decade), they don`t have to change employees` wages unless they`re contractually obligated to do so. Even with a wage cut, non-exempt workers – hourly employees earning less than $684 a week – are generally guaranteed overtime pay. (“Not exempt” and “exempt” indicate whether the employee is covered by overtime protection under the Fair Labor Standards Act (FLSA). Yes, but only if there is an employment contract or collective agreement. If you don`t have a contract, your employer can legally reduce your working hours or reduce your salary, and you may not have recourse. This is the kind of pay cut that people usually think of when it comes to wage cuts. As it seems, this means a reduction in your annual salary or hourly rate. In some cases, the salary reduction can be substantial. However, as we discussed, employers still need to comply with federal and state minimum wage laws and continue to pay overtime if the employee works by the hour and works more than 40 hours per week. Some employers will also reduce the number of hours an employee works to comply with minimum wage laws. It is important that you discuss your particular case with a compensation and hourly claims attorney in Los Angeles at Obagi Law Group, P.C., to determine the legality of your employer`s actions. Workers with individual employment contracts or protections under trade union contracts are generally protected against wage or wage cuts during the periods covered by these contracts.
In these situations, an employer cannot arbitrarily reduce your salary or change your hours of work. The Fair Labour Standards Act sets the national minimum wage and overtime pay. Non-exempt employees must receive a minimum wage of at least $7.25 per hour. If they work more than 40 hours per week, the Federal Labour Code allows them to pay overtime at a rate of at least one and a half times (1.5) of the normal rate of pay. There is no limit to the number of hours an employee who is at least 16 years of age is allowed to work. California-exempt workers must receive at least twice the minimum hourly wage for a 40-hour week. The amount is $684 per week (or $35,568 per year). However, if a particular county has a minimum wage of more than $14, the amount an exempt worker earns must be twice as high. Exempt employees receive compensation on the basis of salary, so overtime pay and other compensation laws do not apply. Employers may require an exempt employee to work more than 40 hours without overtime.
In addition, the exempt employee may not be entitled to breaks. In general, it is legal for an employer to lower their wage if they do not lower it below the California minimum wage ($14 per hour). However, if an employment contract provides that an employee`s salary cannot be reduced, this is illegal. If an employer lowers it anyway, it is possible to sue for breach of contract. Also keep in mind that the wage and working time laws for exempt workers are not the same as for non-exempt workers. The Regular Wages and Working Time Laws do not apply to employees who are exempt from minimum wage, overtime and rest requirements. Keep in mind that employers must respect the higher minimum wage – at the federal or federal level. Hourly employees are also entitled to overtime pay if they work more than 40 hours per week under the Fair Labour Standards Act. If you are still employed and your salary has been legally reduced, it is best to solve the problem before immediately involving the government.
One of the first steps to take is to use payroll to clarify whether the salary has been reduced intentionally or accidentally. Errors do occur, and if they do, your payroll department can correct the error quickly. All employers in the United States must comply with regulations and wage laws established by the U.S. Department of Labor. However, states often have additional laws to regulate employment. Because of the varying levels of regulation, it`s important for workers to be aware of federal and California wage laws. Expertise is important to protect yourself and your livelihood, whether you earn a minimum wage or an exceptional salary. Also, depending on the type of job, some workers receive certain privileges, and everyone needs to know this, as this can impact the amount they earn. The federal minimum is $7.25 per hour. Some states have a higher minimum wage than the federal minimum wage.
Here is a table listing the state`s minimum wage rates (2021). Companies cannot target workers for wage cuts by race, age or other class protected by discrimination laws. Legal contracts and binding agreements, such as employment contracts for senior managers and union contracts for unionized employees, require the employer to pay the declared salary, and they generally do not leave the employer the opportunity to reduce the mutually agreed wage. Contract law determines whether the employer violates the terms of the agreement when it proposes to reduce an employee`s salary, not labor and labor law. If an employer is a party to a collective agreement, lowering workers` wages would directly violate the collective agreement. Employers should not cut their employees` wages without telling them. Wage reductions cannot be retroactive. When companies do, they are presumed to have violated their contracts with their employees.
Nor may wage reductions and reductions in working time be made for discriminatory reasons on the basis of the protection status of the workers concerned. Wage cuts are also not allowed if they lower your income below the minimum wage. If you are an employee who is not protected by a collective agreement or employment contract, there is no fixed amount you have to pay. However, employers cannot lower wages below the minimum wage in their state. That said, your employer can legally reduce the hours of work of your full-time, part-time and lower employees, and reduce your wages as much as they want – as long as they never violate the Fair Labour Standards Act (FSL) by falling below the minimum wage (at the federal or state level, with the lower threshold).