Legal Question in Business Law in California
Change to Sales Incentive Plan
I work for a contracting company. My employer recently changed my sales incentive plan after a very good year in order to reduce my sales commissions. They claim I am making excessively high commissions and this could cause a problem if other employees find out.
Our sales incentive agreement stated that ''management reserves the right to modify or amend the incentive program at any time''.
My question is- can they make these changes on ''open'' projects that are still not complete and therefore reduce or eliminate my sales incentive that I would have been entitled to under the old plan?
I would think they cannot retroactively change an agreed upon commission plan simply to avoid paying what would have been owed.
1 Answer from Attorneys
Re: Change to Sales Incentive Plan
You're right that they can change for the future but not the past. If you are being denied earned commissions, you have a right to pursue them. If the amount in question is sufficient to hire counsel to help, feel free to contact me. The company is not allowed to retaliate against you for making such claim, so if they do, again, contact me for help.
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