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The Daily Insight

Can a company just change your pay?

Author

Ava Robinson

Published Mar 31, 2026

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).

Is it legal for your employer to pay you differently?

Effective January 1, 2017, Governor Brown signed a bill that added race and ethnicity as protected categories. California law now prohibits an employer from paying its employees less than employees of the opposite sex, or of another race, or of another ethnicity for substantially similar work.

Can an employer make you pay for errors?

No, employers cannot charge employees for mistakes, shortages, or damages. Only if you agree (in writing) that your employer can deduct from your pay for the mistake. Your employer cannot deduct from your wages to pay for mistakes.

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What happens if my employer changes my contract?

Your employer must behave reasonably when making changes to your contract terms, and must not leave an employee unable to perform the contract – for example, requiring an employee to relocate at extremely short notice with no payment of expenses.

Can a employer change the terms of employment?

Its terms cannot lawfully be changed by the employer without agreement from the employee (either individually or through a recognised trade union). Where a trade union is recognised, negotiations to change contract terms should be through collective bargaining. Your employer owes an implied

What’s the best way to change your pay schedule?

Integrate planned changes into new contracts rather than rewriting all existing ones. Write the new pay schedule into contracts offered to new hires, gradually phasing out the old pay frequency and converting to your new schedule over time.