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| An employee went on maternity leave using SDI and PFL for a total of 12 weeks and is scheduled to return to work. As a company are we allowed to reduce her work hours from full time to part time and are we also allowed to reduce her pay? She is on a salary basis. The reason for doing this is due to recesssion. The temp we hired to replace her while she was on leave just works out better, pay wise.
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I would proceed very carefully with this. Was this employee out on protected leave (CFRA, FMLA and/or PDL)? If this employee had not gone out on a protected leave, would you be considering reducing her hours? It seems to me that a case could be made that you have retaliated or discriminated against her for taking leave that she is legally entitled to take. Employees that take protected leave are entitled to return to the same or similar position with the same pay unless they would have lost their position anyway had they continued employment without leave.
Furthermore, reducing an exempt employee's salary because you have reduced their hours could run afoul of labor laws. Exempt employees are paid for the amount of work they complete regardless of the amount of time it takes them to complete it.
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