The downturn in business may require employers to reduce wages. If the employee is a salaried exempt employee, then the employer must pay at least the minimum salary amount required in California to retain the employee’s exempt status. In 2020, those amounts are $54,080 for businesses that employee at least 26 employees and $49,920 for businesses that employ 25 or fewer employees. Some specialized occupations have different minimum pay amounts to qualify for exemptions, and employers will need to meet them to preserve the exempt status of those employees.
Businesses may reduce the hourly rates of non-exempt employees for lawful reasons as needed, but all hourly workers must make at least minimum wage.
S. Ward Heinrichs, Esq.
Employment Law Office of Ward Heinrichs
4565 Ruffner Street, Suite 207
San Diego, CA 92111
(858) 408-7543 (fax)