Legal Question in Business Law in California

Employment Contract

I entered into a employment contract 15 years ago. It pays me 40% on new business and 30% commission on renewal business with a minum of $400 per account.

Now they want to change the % to 50/25 which would lower my income $40,000. Can they do that? How much time is required for notification?


Asked on 10/30/07, 4:41 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Employment Contract

IF you have a specific written employment contract that is still in force and defines the commissions, then it can be changed only by agreement of the parties. If instead, you mean that you had an offer letter or a handshake on the terms 15 years ago, then the employer is free to change the terms any time, or to fire you for that matter. They can't retroactively change the rate, but can start the new deal on all new sales.

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Answered on 10/30/07, 5:40 pm
Joel Selik www.SelikLaw.com

Re: Employment Contract

What does the written contract say about changes to the contract or notices. If there are no such provisions (or not contract), then they can make the changes, giving reasonable notice which may be only 30 days.

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Answered on 10/30/07, 7:37 pm


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