Can my employer lower my wages because she is now required to pay us mileage?

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Can my employer lower my wages because she is now required to pay us mileage?

I work for a mobile company. When we got transferred to W-2 employee from being 1099 contractors they gave us a $3 raise and said that the $3 increase was for our gas mileage. They said that it would be better for us tax-wise. They increase just shows on our check as part of our hourly rate. She did this in place of the .58 a mile. Now that the company is being required to pay mileage to all employees, she is going to deduct our pay by $3 and give us the .58 a mile. I live and work in CA. Can they do this?

Asked on May 23, 2019 under Employment Labor Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Unless this wage reduction violates the terms of an employment contract or union agreement, it is legal. The fact is that an employer can set the conditions of the work much as it sees fit (absent some form of legally actionable discrimination). Further mileage reimbursement is at the discretion of an employer; in other words legally they can choose not to provide it. 


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