Legal Question in Employment Law in California

Change in wages!!!

I am an employee at a large Law Firm in California and have a few questions that pertain to Labor Law.

Wages. - If an employee's position is phased out but not completely and placed into a ''new position (new title) '' and their duties basically stay the same however they have added additional duties can they change their pay to commissions only? Can they restructure their employee's wages to fit this new position with added duties and pay them less then what they were making and make them �commissions only�?

How does their vacation time get paid? Do they get paid at their old wage (which has been accumulating over the past few years) or do they get their vacation paid with their new wages? Is all of this legal and fair?

Is it legal to change an employee�s rate of pay 3-4 times in a year with out any notice or reason?

Do I need and attorney?

Thank you.


Asked on 3/16/03, 7:24 am

1 Answer from Attorneys

Anthony Luti The Luti Law Firm

Re: Change in wages!!!

Many of the answers to your questions may depend on your status at the law firm. For example, whether you're an attorney or staff may have implications (I'm assuming you're staff). Similarly, whether you're an at-will employee or subject to an employment contract will also have implications (again, since you're at a law firm, I'm assuming that you're an at-will employee).

If my assumptions are correct, you should understand that the California Labor Code presumes that employment is normally at will. This presumption extends to demotions and paycuts. Accordingly, the employer's right to terminate an at-will employee includes the right to insist upon prospective changes in the terms of that employment. Therefore, an at-will employee can be demoted and his or her pay can be cut at any time. There is case law that recognizes that the employee impliedly accepts such changes in the terms of employment by continuing the employment.

With respect to your questions on vacation, there is no federal or state law requiring employers to provide employees with vacation benefits, whether paid or unpaid. However, most employers do, as it seems your employer does. Where employers do provide vacation, there are some California statutes that apply. Pursuant to Section 227.3 of the California Labor Code, an employee's right to paid vacation time vests as labor is rendered by the employee, and the employee is entitled to receive pay for all vested but unused vacation time upon termination of employment. Accordingly, you should get paid your old vacation based on your old wages.

With respect to your last question, never ask a bunch of attorneys whether you need an attorney (just kidding). Depending on the facts of your case, and the circumstances surrounding the changing of your employment status, there may be some claims that exist. If you'd like to examine those issues further, please feel free to contact us.

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Answered on 3/19/03, 5:28 pm


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