Legal Question in Employment Law in California

Retroactive Commission Change

I have just been issued a sales goal for the month that just concluded. In addition to this goal, a change in commission was proposed. Is it legal to issue a sales goal and commission plan for previous months? The new commission plan pays me based on a monthly percent to goal, instead of the quarterly percent to goal.


Asked on 4/30/03, 7:53 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Retroactive Commission Change

Employers cannot apply commission plans retroactively. If there was an understanding of what the terms of the commission plan was, those terms remain in effect until notice is given of the change, and then, it only applies to future sales.

You should gather together all your documents relating to your commission agreements and review them with a labor law attorney near you.

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Answered on 5/05/03, 11:34 am


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