[dragonwriter]

> The state of California cannot mandate “no cut in pay” by employers

It can specify no cut in full-time pay for an employer for substantially similar work, on both an individual and overall basis (the current text only does this on an individual level, but that's not all the State could do. E.g., “The minimum hourly wage shall be the greater of $X/hr or the 5/4 the actual wage paid by the employer to the employee on date Y or the 5/4 the average wage paid by the employer to employees doing substantially similar work on date Y.”)

[abduhl]

This formulation presents a host of federal (and state) constitutional problems (i.e., contracts clause, takings, equal protection, etc.). You're certainly right that California "can" specify this. California would not be able to successfully defend this type of law in court. Pedantically, I guess you're right in the same way that you can "sue" anyone for anything, provided "sue" doesn't mean "win the lawsuit."