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2.) How to make the change legally? Im assuming
i cant just say, "Hey man your getting paid like this
now, take it or leave it".
as long as your method of pay is legal and there are no contracts preventing you from instituting the new pay method, yes, you can say exactly that.
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They pay hourly base plus commission, if one technician
makes an error another fixes. The one that fixes itemizes
parts/labor and turns in. They deduct that amount from
the other technicians commission.
that takes an unfair amount of the first workers earnings. The first worker earned a commission for his work. Here you are paying the second worker all his time plus taking that same amount from the commission of the first worker. At most you need to take away whatever commission would have been earned on that specific job and give it to the repairman.