Legal Question in Employment Law in California

Last year the company I work for went into financial difficulty and cut my pay by over 20%. They assured me that the pay would be accrued and that I would get it paid back as soon as they came out of financial difficulty. I have an email from the CEO that states that I would begin to get paid back no later than March 2010. Nothing has happened. I am owed more than 70k in back pay and I don't know what to do. I have asked the CEO to begin to pay me and I basically get the attitude "tough shit". Is there anything I can do?


Asked on 4/02/10, 5:10 pm

2 Answers from Attorneys

Aryeh Leichter Leichter Law Firm, APC

Generally, a promise to do something that one is not legally required to do, like reimbursing an employee whose salary was previously cut, is not enforceable. There are a number of exceptions to this rule. For instance, if the CEO's promise to pay you back was made for the purpose of ensuring your continued employment with the company or if you reasonably relied on this promise to your detriment (i.e. this promise convinced you to stay on with the company and forgo other employment opportunities), you may be legally entitled to this pay. The context and circumstances surrounding your employer's promise is critical in evaluating the strength of any potential claims.

Ari

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Answered on 4/07/10, 5:56 pm
Terry A. Nelson Nelson & Lawless

An employer is entitled to set and change hours, duties, titles, pay, compensation, benefits, leaves, vacations, holidays, etc. Employees have the 'right' to pay and employee benefits per the law and per company policy as agreed. In general, unless an employee is civil service, in a union, or has a written employment contract, they are an 'at will' employee that can be disciplined or fired any time for any reason, other than illegal discrimination or retaliation under the Discrimination, Civil Rights, or Whistle-blower, or similar statutes. The employee's goal should be to keep the employer happy. In your case, it appears you may be able to show that your salary was 'deferred' instead of cut, so if you can't resolve payment of the deferred amount, you could either file suit, or file a claim with the Labora Commissioner, for the unpaid amount. You can't change the risk that the company could at any time go under without paying you if they are insolvent. If you want to get legal counsel to help you recover your money, feel free to contact me. Also keep in mind that if you pursue this demand for payment, any retaliation by the company would also be grounds for legal action.

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Answered on 4/12/10, 11:17 am


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