Legal Question in Employment Law in California

Pay Cut

I have been working for a company for almost 3 years. I

have recieved one raise in this time. Two years ago all

of the employees were asked to take a temporary pay

cut. It lsted for 5 months. We were rembursed and

brought back to full pay. 7 months ago those of us they

consider managers were asked to take a temporay

20% pay cut for 3 months. We were told we would be

reembursed again, this was all done verbally. 7 months

later we are still at paycut salaries ( I am making less

than when they hired me) Now they have put an add to

hire a new manager. Is this legal? Is there a duration of

time that makes a temporary pay cut a permanent one?


Asked on 7/02/03, 8:54 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Pay Cut

Thank you for your inquiry.

Your pay cut would seem to be a mutual agreement, and as you may know, California is an "at will" employment state.

What this means is that an employer can demote or terminate employment for any reason, or for no reason at all, so long as the action against you doesn't violate some statute or public policy.

In your case, you didn't mention if you have a contract or employee manual or handbook that might prohibit such pay cuts. As a result, the employer might be able to, due to economics or other reasons, ask for a paycut, and even not reimburse pay or reinstate pay later.

Was the promise to reinstate your pay rate in writing, and did it have a reinstatement date?

I hope that this information helps, but if you have further questions, want more information, or feel that you need legal representation, please feel free to email me directly at [email protected]. I am happy to help in any way that I can.

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Answered on 7/03/03, 8:16 pm


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