Legal Question in Employment Law in Florida
WINDFALL compensation pay reduction
My wife, in sales, recently sold a 'record' number of hi-tech products....the company has flagged her compensation pay to be reviewed by the 'WINDFALL' compensation committee. This term 'Windfall' refers to a sale which questions the amount of work and/or product 'given away' to get the sales contract signed.. Basically the company is reviewing, for adjustment, the expected sales compensation because of its' large 'record' amount....all happening within the constructs of a National agreement that was followed to the letter (but did not factor in the posiibility of such a large sales taking place). By law, do they have the right to reduce the sales compensation because some bean counter says 'oh that's too much' for this type of sale? Incidentally, the total percentage (of her net compensation) is about 3% in this sale, and her previous selling realtionship and future relationship (client plans on ordering another 120% of the exsisting order in the future) have weighed significantly during the sales process...
2 Answers from Attorneys
Re: WINDFALL compensation pay reduction
So... What is your question?
Re: WINDFALL compensation pay reduction
There is unfortunately no law that prohibits your wife's employer from reducing her sales commission if they so choose. It is a business decision and while it may not seem fair, it is their call to make.