Corporate Commission Re-structure

My company does a commission re-structure every March (this is not disclosed in my employment agreement but it is common knowledge among sales Reps) that changes the way I am paid. Is it legal for them to do so? If it is not legal how do I contest it? Can I be compensated for lost wages?

2 answers  |  asked Mar 4, 2002 02:28 AM [EST]  |  applies to California

Answers (2)

Harvey Berger
commission changes

Any changes to the commission structure must be prospective (i.e. in the future.) The company cannot take away commissions you have earned (retroactive changes are illegal forfeiture of wages.)
Harvey Berger
619-595-1365

posted by Harvey Berger  |  Mar 4, 2002 10:51 PM [EST]
Janet M. Koehn
legal unless contract says otherwise

it's legal for a company to change the way anyone is paid, as long as they comply with state and federal law. this includes salespeople's commission structures. the only exception would be if your written employment agreement specifies a commission structure and length of time it stays in force, unless of course, the agreement provides that it can be modified!
you need to have an attorney experienced in employment law look at your employment agreement and the company's commission structure and advise you accordingly. if you are in southern california, please call me for an appointment.
janet koehn
805-658-0655

posted by Janet M. Koehn  |  Mar 4, 2002 10:31 AM [EST]

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