Legal Question in Business Law in California

Re: Business Wages

This is pretty much a matter of private contract. Factors to consider are the minimum wage laws, any applicable union contract, and whether there is an express or implied contract between the employer and the employee for a particular compensation level. Generally, if the employment is "at will," i.e., the employer can fire the employee at any time and the employee can quit at any time, it's pretty hard to argue that the employer couldn't change the pay arrangement unilaterally. However, I believe there are some states, not necessariy California, where a change in pay cannot be made arbitrarily even if it does not breach a contract with the employee. Further, I think the employer MUST notify the employee of any reduction in pay before the pay reduction can be legal and effective. There are probably exceptions to this general rule.