Legal Question in Business Law in California

Lowering Sales Quotas for some, but not others

I work for a large tech company. Given the difficult economy, management has lowered the quota of all salespeople that were under performing, but made no changes to those that were on target to meet their quota goals. All reps in this company have the same title, quotas, but are only differentitated based on geography. The quota reductions were only on the bases of ytd performance with no other factors taken in consideration. Can a company do this? Is this a form of discrimination of such?


Asked on 2/12/09, 9:57 am

2 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Lowering Sales Quotas for some, but not others

It doesn't seem to me to be a wise business strategy, but it's not illegal.

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Answered on 2/12/09, 11:36 am
Adam Telanoff Telanoff & Telanoff

Re: Lowering Sales Quotas for some, but not others

The company can do this, and it does not appear to be an actionable form of discrimination.

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Answered on 2/12/09, 2:03 pm


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