I am not a lawyer (you may want to seek one out regardless), but I am an small business owner/employer here in California and can be of some help. At this time, do not focus on the new employer’s other wrongdoings. Just focus on your own issues with your new employer. Do not endanger your employment (if you want to keep this job) on things that look illegal unless you have the capacity to verify it beyond a resonable doubt. As a manager, you might be able to, but for now, stick with your issues. So many times, I’ve seen employees who know only half of some issue when I am dealing with other employees, that they look foolish in reporting erroneous wrongdoings (by me) that do not have any effect on them personally and is a waste of time for the DLSE. An exception is when you are told by your employer is to look the other way when you are directed (you being the manager) to hire the illegal employees yourself. You become a direct witness to the wrongdoing and the whistleblower provisions will cover you.
Your initial question depends on a few things. Are you hourly or an exempt employee? As a manager, you might be exempt if this is true:
Exempt employees must generally earn a minimum salary each month of no less than two times the state minimum wage ($6.75/hr. x 2 = $13.50/hr.) for full-time employment. However, merely placing an employee on a salary does not exempt that employee from wage and hour laws. A non-exempt employee who has been placed on a “salary” earns overtime the same as hourly wage earners.
But I need to know a few things. Are you hourly or salary? Salary workers who make $13.50/hr. based on a 40hr./week is excluded from overtime (although some employers still pay overtime out of the goodness in their heart…YMMV). Based on a 21 workday month, the monthly salary is about $2268. Do you make more or less than this threshold? Also, an exempt employee has the majority of duties that usually include:
- Interviewing, selecting, and training employees
- Setting and adjusting pay rates and work hours or recommending same
- Directing work
- Keeping production records of subordinates for use in supervision
- Evaluating employees’ efficiency and productivity
- Handling employees’ complaints
- Disciplining employees
- Planning/Determining/Distributing work
- Deciding on types of merchandise, materials, supplies, machinery or tools
- Controlling flow and distribution of merchandise, materials and supplies
- Providing for safety of employees and property.
As for raises, an employer can actually lower wages (as long as it’s not subminimum wage). So even if you plead your case that you are entitled to a raise, an employer could just as easily lower it (or worse yet, eliminate the position). Some are nice enough to give some sort of notice, although there are mandatory notification laws for certain size businesses or larger. You could try to file a complaint with the California Division of Labor Standards and Enforcement. Check that site out.
Also, check out California Labor Code. A manager should be familiar with the code so they don’t become liable themselves to their subordinates. Good luck.
As for a verbal contract on a promise under a former owner/employer, I don’t see you prevailing unless the old employer made a written statement that you are entitled to a raise by such and such date, and was part of the agreement in the transfer of the business. You may want to ask your ex-employer if that happened. Good luck there too.
I support myself in the most expensive rental city in the US on about $13,000, so I’d hate to imagine what under qualified is.