In California, can a company take you from hourly pay to a flat rate without making it salary?

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Zzyzx	Not sure, but isn't CA minimum wage $8/hr? $300/40 = 7.50/hr. I would tell your friend to get a new job Was this answer helpful to you? Yes / No

bostonianinmo	It's legal, as long as he'd being paid the minimum wage for the actual hours worked. I'd say that they're trying to get him to quit instead of laying him off. If he quits, he loses unemployment benefits, though in his case he may have a justifiable reason for quitting. If they lay him off, he's eligible for unemployment. If he collects unemployment the company's unemployment tax rate will increase so they may be trying to push him to quit in the hope that he won't get unemployment coverage. Was this answer helpful to you? Yes / No

RY	If the company is paying him a flat rate, it sound like they are making him a salaried exempt. In that case the 10 hours a week can not be mandatory, it could be more or less hours at the same rate of pay. He needs to verify how he is classified. Was this answer helpful to you? Yes / No

slipstreamer	There is probably a website for CA labor law - I think they can do that, but he should walk. Unless they are cutting his hours - why would/should he stay? Usually a flat rate is more, not less. Sounds like they are ether trying to take advantage or get rid of him. Was this answer helpful to you? Yes / No

Rico	Not an attorney but my guess is that an employer can change anything they want if they give the employee/contractor enough notice. As long as there isn't a prevailing contract that prohibits the change. Was this answer helpful to you? Yes / No

Natural Medicine Man	In any state an employer can pay anyone whatever they wish. There could be two (or more) reasons management has done this (1) They can get the same amount of work out of him for $100 a month less (2) They are trying to push him out of his part time position. Suggestion: Move on to greener pastures. Was this answer helpful to you? Yes / No

Mel	This is illegal. There are very specific rules about what qualifies an employee as exempt from overtime (i.e., salaried.) If he is doing the same job that he was doing before, not only are they paying him less but by paying him a flat rate and no OT, they are violating pretty much every wage and hour law there is. Visit www.dol.com to find a local labor board office. The wage and hour section can give you more info on exempt vs. non-exempt employees and how pay should be handled. Your friend should find a new job and file a complaint with the labor board to take these scuzzballs down. Was this answer helpful to you? Yes / No