DiGiacinto

Defendant (hereinafter referred to as Ameriko-Omserv)

appeals from a judgment of the municipal court awarding plaintiff $19,820.40 in damages on his claim for breach of his employment contract as an at-will employee, after Ameriko-Omserv reduced plaintiff’s rate of pay. The issue on appeal is whether the employer of an at-will employee is liable for breach of contract when the employer notifies the employee of a prospective change in his rate of compensation and thereafter the employee continues in employment. This appears to be an issue of first impression under California law.

Factual and Procedural Background

Plaintiff Victor DiGiacinto filed a complaint in the municipal court against his employer, Ameriko-Omserv, for breach of contract, claiming that the employer, unilaterally and without consideration, modified the specific term for compensation in a written employment contract dated August 22, 1994, by instituting a second written employment contract dated January 30, 1995, which became effective February 5, 1995.

At trial, the matter was submitted for decision on the trial briefs and agreed facts, which established the following: In June 1990, plaintiff was…