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  1. #1

    Default Rules on Commissions Changed After Hire

    My question involves employment and labor law for the state of: Texas

    Got a construction sales job which is salary plus commission. During training I signed something which stated my commission as a flat rate for sales. I have an offer letter which states my flat rate commission "on sales". There are no stipulations listed or products listed.

    My employer told me after acceptance and training, though it had been decided before I was hired, that I was not to receive commission on the highest selling product that they had. Salesman who were hired before me, even by a few months, are receiving commission on it. They will continue to make the product and have no plans to stop production. This product accounts for at least 70% of the company's current sales. Numbers are down and they want me to switch customers over to another product, but the product is not the same quality or price. It's just a product that we have few competitors on, people started making cheaper versions of their best product so sales slipped. Despite that it's still the vast majority of what they sell. Looking at last years numbers, it's the difference between $3-4k commission a month, and $500 a month.

    I have signed nothing stating I agreed to this. They gave us a few more reasons which were complete bullshit, either way, I'm not being paid on it and it doesn't count towards my quota. Now even if this is not legal to do, my worry is that if I attempt to pursue this further they'll just fire me. I have a family to take care of and my decision to take the job was based on their product line and the numbers they told me for the territory. It's a young industry, I'm the oldest out of the newer people who were also denied. I just can't help but think they wouldn't have pulled this on experienced, older salesman, there was no compromise or discussion. My legitimate questions were dismissed as irrelevant and that was that.

    Do I have any options or am I just ****ed?

  2. #2
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    Default Re: Rules on Commissions Changed After Hire

    Your employer needs to make sure that you earn at least minimum wage. Beyond that, absent a contractual restriction on changing commissions, your employer can change the commission structure at any time, effective from that point forward.

    You have not given any indication of unlawful discrimination (age, gender, race, etc.)

  3. #3

    Default Re: Rules on Commissions Changed After Hire

    So they don't have to reserve the right to change it, so long as the contract doesn't specifically say they can not?

    That being the case, if I ask for a 'good faith' contract stating that they won't alter my commission rates for a period of time (they said this was only because we were new and it wouldn't happen to us in the future) and they neglect to specify that I won't be receiving commission on that product, where would that put me?

    The only way I can see coming out of this with anything is if I am able to secure my commission rights without that restriction, and then upon leaving or being laid off, demand back commission based on the agreement.

    Age is the only possibility, but only due to the way it was handled and how we were treated in the matter. It felt as though we were being lectured like children, and waiting until training was done was unethical in my opinion given the fact that they had planned this in advance. Of course there is nothing direct or damning in any of that, just the general feeling of the environment. Given that we're right to work, I assume the law would say we have the right to leave the job if we don't like it. It's just the kind of stuff that employers can pull when they know people need work.

    Thanks for responding to my topic.

  4. #4
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    Default Re: Rules on Commissions Changed After Hire

    What is your first statement supposed to mean?

    You either have a contract or you do not.

    You haven't told us anything about the promise not to alter your commissions, its context, duration, application to the time frame at issue, the extent to which you can document this claim, the extent to which your employer admits the promise.... If you do not want to share the relevant facts here you need to consult a lawyer with the details.

    You make it sound like you're young. Sorry, but if your <40 age discrimination is not going to be viable.

  5. #5

    Default Re: Rules on Commissions Changed After Hire

    My first statement is a reference to the wording of the contract. The contract says "you receive this commission on sales", it's a flat rate for everything we have. It also covers my bonuses and tier structure but no where does it mention changes to the rate. It does not say they have the right to change it whenever they want, but it also doesn't say that they can't change it at will. My question was whether they had the right to change my commission rate or coverage without specifically stating that they reserve that right in the contract.

    I have their refusal to give the commission recorded through emails. They did not have us sign anything or send an 'official' letter out.

    My statement about the 'good faith' contract was because you stated they could change my rate without notice despite the contract assigning my rate.

    I'm not very young but the other new hires are, I know age discrimination isn't going to happen here. Thinking on it more what pissed me off was that I was the only one who asked questions or objected to the reasoning. Everyone else at the meeting didn't say a thing and I believe their inexperience was cause for their concern. I get that you don't want to be the guy rocking the boat with management, but had a few others interjected I think management may have considered some form of compromise. It was easy to single me out and to refuse to answer my questions which related to the reasons that they gave (they cited numbers but wouldn't give specifics, etc.) So the age thing just got to me personally, but I know there isn't the slightest support for actual discrimination.

  6. #6

    Default Disclosed False Commission Information in Interview

    My question involves labor and employment law for the state of: Idaho

    During the interview process I was told the commission structure for the company. They said it's a flat rate for all sales. I was told approximate sales numbers for what my territory had done in the past. I had other job offers at the time but decided to accept this job based on the general earning potential they laid out and knowing they had at least one very strong product.

    After being hired and trained I was told that I would not be receiving commission on their highest selling product, which accounts for ~75% of their sales. This is a huge difference in pay obviously and the numbers which I was told in the interview were completely irrelevant because of this. I would not have taken this job had I known what they planned to do. I also found out that they had planned to do this even before I was interviewed, so it was not a post hiring decision.

    Are they obligated at all to tell me this kind of information in the interview? I feel that they highly misrepresented the position they were offering. Also, they had me sign a commission agreement at training which only specified a flat rate on all sales, with no specific product restrictions.

  7. #7
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    Default Re: Disclosed False Commission Information in Interview

    Same question, same answer. Unless you have an actual contract with a specific term that prevents a change of the commission structure they can change how commissions are paid. You have every right to seek employment elsewhere.

  8. #8

    Default Re: Disclosed False Commission Information in Interview

    So the contract I signed that states my specific rate is basically worthless because they can change it at will?

    - - - Updated - - -

    I just don't see the point of even making me sign the contract if they don't have to uphold their end of it.

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