Legal Question in Employment Law in Georgia

Commission/Compensation Plan Changed

I work in sales and the compensation plan presented to me at hire states that I will receive a base salary, a sign-up commission, and a production bonus. The sign-up commission is paid in brackets, based on total value of all sales. I am not an exempt employee, so my total revenue factors into my overtime. The sign-up commission structure was recently modified without notice or explanation. Within my office, the changes are not uniform. I have not been able to locate any policies in regard to the changes or the proper implementation. When I asked for clarification and understanding of the changes, my job was threatened. I know that these practices are not ethical. Are they legal? If not, what avenues of recourse are available to me?


Asked on 4/10/02, 12:49 am

1 Answer from Attorneys
Jeff Kent Kent & Merritt, P.A.

Re: Commission/Compensation Plan Changed

In most cases, employers are legally authorized to change employees' compensation plans. A possible exception to this general rule is if you have a specific contract which outlines the compensation, in which case the company might be obligated to obtain your consent to change the contractual terms. Otherwise, as long as the company does not violate any overtime, minimum wage or discrimination laws, they are proabably entitled to make such changes.

The foregoing is general information only, not specific legal advice. No attorney/client relationship has been created or should be implied. Consult with your attorney before taking legal action.

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Answered on 4/10/02, 7:50 am


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