Legal Question in Employment Law in California

I work in Inside Sales in California. I recently opened an account with a client who asked for a discount on their first order. When I approached my boss about the discount my boss said yes, we'll offer them a discount but we're cutting your commission rate by 2% for all sales with this client.

When I questioned this judgement they said I could either take it as it was or they could take the sale from me and I could receive 0% commission on the sale.

I am contracted for 6%, was recently raised to 7% commission on my sales for the company.

Is this legal for them to do this? It doesn't say anywhere in my contract that they can take a client from me, nor does it say that I am required to take a pay cut over a sale. The only thing it does say is that my "territory" can change at any time.

Help!


Asked on 8/29/10, 3:30 pm

2 Answers from Attorneys
Aryeh Leichter Leichter Law Firm, APC

From what your question, it sounds like your employer is in breach of the employment contract; it depends on the language of the contract. Please contact me at [email protected] or 213-381-6557 if you'd like to discuss the matter further.

All the best,

Ari Leichter

Read more
Answered on 9/03/10, 4:01 pm
Terry A. Nelson Nelson & Lawless

Legal? Yes, it does not break any criminal law.

Fair? No.

A breach of a written contract of employment? Yes, if there is one documenting your compensation structure, and if it does not allow for adverse change by the employer.

You can argue and contest the point to management, you can quit, you can look for new employment, you can possibly bring a claim with the Labor Commissioner or sue, as long as you are willing to 'rock the boat'. Life is not fair, and 'troublemakers' usually end up losing their job, one way or another. The law is supposed to protect you against retaliation in this situation. If you suffer that for making a formal complaint or taking any action, feel free to contact me to discuss whether you have any evidence sufficient to support a legal claim of retaliation at that time.

Read more
Answered on 9/03/10, 4:17 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California