Legal Question in Employment Law in California
In CAI have worked for 3 years as a $1500/mo salary+ 10% commission employee. Recently my boss said as of June 1st I am 10% commission +1% commission over ride on my team sales which is a pay cut. I work 45-60hr work weeks at our store and was wondering if this is legal?
2 Answers from Attorneys
The employer is entitled to set and change hours, duties, titles, compensation, benefits, leaves, vacations, holidays, etc. just not retroactively. In general, unless an employee is civil service, in a union, or has a written employment contract, they are an 'at will' employee that can be disciplined or fired any time for any reason, with or without �cause� or explanation, other than for illegal discrimination, harassment or retaliation under the ADA [age], Civil Rights [race, sex, ethnic, religion, pregnancy, etc], Whistle-blower, or similar statutes. The employee's goal should be to keep the employer happy. If you are properly classified as 'salaried', your options are to stay or leave.
If you are working overtime doing inside sales, you may be entitled to overtime pay, even though your employer is classifying you as salaried. If more than 50% of your pay in a pay period is earned from commission, in that pay period the employer may not be required to pay overtime. There are other questions that may be relevant -- your actual pay each pay period, managerial duties, etc. As for the change in commission rate, they are allowed to do that on new sales, and might not be able to do that on old sales that just happen to close after June 1, especially if the old commission plan lists a different time period.