Legal Question in Employment Law in California
Salary and Commission (Sales)
I receive a base salary and sales commissions.
My sales commissions are computed at 15% of gross sales, minus gross base salary, and paid bi-weekly.
My question is: if in one two-week period I fail to make gross sales in excess of $9,070 (which would cover my salary), is it legally permissible for my employer to reduce my base salary?
If so, under what conditions?
Thank you for your time and attention to this question.
1 Answer from Attorneys
Re: Salary and Commission (Sales)
Generally, employers may increase or decrease an employee's rate of pay, upon notice to the employee. It cannot be done retroactively. Of course, if you have a guaranteed contract for a specified period of time, the contract will control the terms of your employment benefits.