Legal Question in Employment Law in California

Can an employer change a commission structure at any time? For example, we were notified that there would be a change in commission starting Jan 1st, but I was not given details until January 20th (I did not sign anything at that time).

Since that time, the structure was changed again (to be better than the original Jan 1st), and we are to be presented with our final structures (and sign them) this week- Feb 1st. Is it legal for them to change the structure for January's sales since we are not signing until February 1st?


Asked on 1/31/12, 9:01 pm

1 Answer from Attorneys

Technically no. It is not legal to change pay after work is performed. Simply announcing that pay will change without saying what it will change to does not work. You have to pay an employee as agreed until you tell them what their new pay will be, and the change can only be prospective, not retroactive. They must pay according to the old commission schedule until 1/20/12, then the "bad" new structure for 1/20 until the new structure is provided to you, and the new structure once it is provided to you. Your signature is not required for the commission structures to take effect.

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Answered on 1/31/12, 9:47 pm


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