Notice of Claim and Conference

[Rabelais]

California

Reason:
Plaintiff discharged and has not received final wages earned between November 28th and February 1, 2002, being $2000.

The employee was fired on 1/31/02. On 11/28/01 his pay was decreased due to change in position, from $16 - $12/hr. He met with the owner and was given the choice of being fired or taking a pay cut and change in job responsibilities. Verbally, he accepted the latter. No documents were signed indicating his pay decrease.

I am the employer and this is my case:
An owner met with him and had the discussion. Two managers were aware of the decrease. He had discussions with another manager concerning the decrease, who is willing to write a letter describing in detail their conversation. At the same time of his pay decrease, his company vehicle was taken away from him and his job responsibilities changed to that of a helper, previously he was a plumbing technician. He received and cashed 6 checks with the new rate without dispute. The first and only notification we received was by the Labor Commissioner's letter.

We understand that we should have documented with signature the pay decrease, however, this is clearly a case of him trying to take advantage of us.

Where do we stand legally and do you have any suggestions for me, as the employer?

 

[Beth3]

I can't comment specifically on CA statutes but in my experience, this will likely boil down to who is most credible. I am assuming the employee has not filed suit but has lodged a complainy with CA's Labor Board. If this is actually litigation, then you should get an attorney.

Adminstrative Law Judges frequently have to decide these "he said/she said" disputes between an employer and an employee based on who is most credible and it would seem that you have credibility on your side.

The employee was clearly demoted as evidenced by the removal of the company vehicle and change in his responsibilities. Thus the pay reduction makes sense. You also have another employee (a manager) who can attest to independent conversations with the employee regarding his change in status and pay. Plus, the employee cashed six paychecks at the reduced rate with no concurrent objections.

On the other hand, you have an ex-employee who was terminated and has nothing to lose by filing a complaint with the State and making these allegations.

You should respond truthfully and fully to to the complaint and include a separate statement from the other manager as to his converstations with the employee on this issue. Then keep your fingers crossed.