Legal Question in Employment Law in Massachusetts

Are Retroactive Pay Plans legal?

I took a position in MA (May 2008) with a signed employment agreement between my employer and I. In March 2009, it has been announced that we will be restructuring commission plans.

I was given a new employment agreement last week with a pay increase in salary, but adjusted format for commissions. I have not signed or approved this agreement since my employer is not available to discuss.

I just received payment for salary without increase and a commission payment which was retroactively applied and cuts out ''overpayment'' for January commissions based on this new plan.

Is taking money from my pocket in this way legal? I have not signed a new agreement. Also, if retroactively applying commissions, should I also not see the retroactive increase in my salary?

Please help.


Asked on 3/18/09, 3:22 pm

1 Answer from Attorneys
Howard Wilgoren Law Offices of Howard I. Wilgoren

Re: Are Retroactive Pay Plans legal?

The answer depends on the terms of the contract you originally signed. In any event it seems that a retroactive change in your compensation would be suspect unless there is some basis for doing so in the contract.

I would need to review your contract to give a more definitive opinion. If you wish to discuss this matter further please contact me.

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Answered on 3/19/09, 8:52 am


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