California Pay Rate Change Form
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FAQ
A pay cut cannot be enacted without the employee being notified. If an employer cuts an employee's pay without telling him, it is considered a breach of contract. Pay cuts are legal as long as they are not done discriminatorily (i.e., based on the employee's race, gender, religion, and/or age).
In California, an employer can change the rate, terms and conditions of your employment relationship at any time by giving you notice as the employee.
The regular rate of pay is used as the basis for calculating overtime pay for non-exempt employees in California. Overtime is paid at 1 ½ times to 2 times the employee's regular pay. When it is not calculated correctly, the employee may not be receiving the correct overtime pay rate.
The regular rate of pay is the total earning by the employee divided by the total number of hours worked in the workweek. REGULAR RATE OF PAY = Divide the total earnings for the workweek, including earnings during overtime hours, by the total number of hours worked that workweek.
California does not have a law addressing when or how an employer may reduce an employee's wages or whether an employer must provide employees notice prior to instituting a wage reduction.of Industrial Relations states that an employer must give an employee prior notice of a change in pay periods.
Pay Rate Notice Requirements. Many states require employers to provide written notice to employees of their regular rate of pay and overtime rate, if applicable, at time of hire and when the rate of pay changes.
An employee's regular rate is the hourly rate an employee is paid for all non-overtime hours worked in a workweek.When calculating an employee's regular rate, all compensation received by the employee in a workweek must be included, including wages, bonuses, commissions, and any other forms of compensation.
Shan Evans, of People Management, explained: "Legally, an employer cannot impose a pay cut upon its employees if they have an employment contract that sets out details of their salary entitlement.This means if your employer wants to cut your pay, they have to ask for your permission first.
Regular hourly rate means hourly compensation paid to an employee outside of overtime, and includes the base wage rate and any hourly shift allowances and hourly premiums. Regular hourly rate means an amount calculated by dividing annual salary by 2080, or 2088 in the case of a leap year.
