My question involves labor and employment law for the state of: California
About 8 months ago I was contacted by a recruiter who worked in the HR department of the company that I currently work for. They had read my resume on a job posting site and they thought I would be a good fit for the position that I was applying for. A job interview with my department's hiring manager was schedule and after the interview it really, really looked that I was going to get the job. A few days later, I got a phone call from the same recruiter telling me that they want to hire me. I told them that I did not want to make anything less than $21 an hour (I have a related degree and almost 2 years of experience). I was then told that I could start at $23 an hour and I was very excited. I was about to start filling out all of the needed paperwork and then I got a call from HR asking me if I wanted to come in a temp. Initially I said no because I had heard many horror stories about temp agencies, but they said the benefit of me starting as a temp is that I could start this week as opposed from 2 weeks from now. In addition, I could some cross training from my predecessor before he left. I asked how long I would have to be a temp and how much money would I be making? I was then told I would only be a temp for a maximum of 90 days, and that I would start at $20 an hour, but when I got hired on after 90 days I would be bumped up to $22 an hour with full benefits. Since I had been out of work for a couple months the temp way sounded like the best way to go so I did it.
Worst mistake ever.
Its been almost 8 months and I still haven't been hired on full time. Luckily I have been making $23 (probably from a temp agency bump) an hour so I have been pretty happy, but last week that all changed. I had a meeting with a senior recruiter at my work (who is the boss of the other person I talked to who unfortunately no longer works for the company) and she said I would probably get an offer letter by the end of the week, but I would take a drastic $2-$4 pay cut. When I questioned the pay cut I was simply told that "HR" did not think I was qualified for the position. I told my boss and he told his boss and they were both livid. They said my department had already budgeted for my salary at a cap of 48K per year (starting) so it made no sense and if anything I would remain at my currently salary. They had a meeting with an HR VP and he said salaries are non-negotiable. When they told him I was told something completely else he said he didn't care because that person no longer works for the company so it is null and void.
My boss said he had never heard of this and it was completely ridiculous (they are now offering me $19.70 per hour) and they said if I do not accept the position then they will terminate me. Is this whole situation even legal?
Also, the old recruiter who longer works at my company said she would even be willing to talk to HR and my department to say "hey he was offered this, you guys can't change it", but I don't know if that would even mean anything.

