Legal Question in Employment Law in California

That happens all the time. The employer is entitled to set and change hours, duties, titles, compensation, benefits, leaves, vacations, holidays, policies, rules, etc. just not retroactively. Employees have the 'right' to pay and employee benefits per the state minimum wage and hour laws and any formal company policy or formal written contract that may be in place, the right to be provided a 'safe' workplace to minimize risk of injury, and sometimes are entitled by law to certain medical/pregnancy leave rights. That's about it. Not only are there no laws against 'unfair treatment' or poor management, but 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�, explanation or notice, unless it is based upon illegal discrimination, harassment or retaliation. Any employee's goal should be to keep their supervisors happy and make them look good to the company, and make the company money. That�s how the company pays employee wages. If you don't, then don't be surprised to be replaced.

They cannot retroactively change your commission rate, but they can going forward for the reasons Mr. Nelson has elaborated. So they have to pay you 5% on any commissions earned before notice of the change, but they are free to pay 3% for all commissions earned after the change.