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  1. #1

    Default What is Your Recourse if Your Company Chooses to Not Pay Your Commission

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

    My commission/salary contract with my employer says they reserve the right to change my commission at any time for any reason. Apparently, this is common language in commission based employee contracts.

    In the past they have significantly reduced my commissions and one they took away all together. I have 2 commissions that I am waiting on and I feel that they are delaying while waiting on me to retire. If I retire, I lose the commission and it's too large an amount to walk away from. I am trying to hold out as long as I can so I can get my commission, but they are making it very difficult to stay (hostile work environment). And I can't even be sure they will pay the commission even if I stick it out.

    What can I do?!?!!? Can companies really do this just because of the contract?? (The commission I'm expecting is about $100k.)

  2. #2
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    Quote Quoting georgiaworker
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    Can companies really do this just because of the contract??
    I don't know without reading the whole contract.

    Quote Quoting georgiaworker
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    What can I do?!?!!?
    Take your contract to an attorney ASAP.

    Quote Quoting georgiaworker
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    The commission I'm expecting is about $100k.
    For that kind of money you can't afford not to see an attorney.

  3. #3
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    Quote Quoting georgiaworker
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    (The commission I'm expecting is about $100k.)
    Stop reading these forums and consult an attorney. That amount is far too much to leave to chance and time. Call/consult now.

  4. #4

    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    The language in the contract is written in a way to give them COMPLETE authority to change, reduce, or eliminate commission AT THEIR DISCRESION. I have consulted an attorney and he said that the way the contract is written there is nothing I can do. I am looking for some other option!! Something out of the box, I guess.

  5. #5
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    Quote Quoting georgiaworker
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    The language in the contract is written in a way to give them COMPLETE authority to change, reduce, or eliminate commission AT THEIR DISCRESION. I have consulted an attorney and he said that the way the contract is written there is nothing I can do. I am looking for some other option!! Something out of the box, I guess.
    Sorry, but if you aren't willing and able to sue your employer, there are no other options and he gets to do what he wants with impunity.

    There a concept in contract law called "unconscionability."

    "If a contract or term thereof is unconscionable at the time the contract is made a court may refuse to enforce the contract, or may enforce the remainder of the contract without the unconscionable term, or may so limit the application of any unconscionable term as to avoid any unconscionable result." [Restatement (Second) of Contracts Section 208].

    A contract that allows your employer to renege on $100,000 worth of earned commissions could be unconscionable.

    Talk to more lawyers until you find one that understands that.

    Be prepared to pay attorney fees. This isn't going to happen on a contingency fee basis.

  6. #6
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    Quote Quoting adjusterjack
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    A contract that allows your employer to renege on $100,000 worth of earned commissions could be unconscionable.
    The determination of unconscionable is made looking at the contract at the time it was entered into. Thus the fact that there is now a $100,000 commission at stake is not a factor in making that determination. Moreover, simply because the amount at issue is substantial does not itself make a contract provision unconscionable.

    There is simply no way to even guess what possible arguments might be in play here without reading the entire contract and we don't have that here.

  7. #7
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    I'm surprised the OP signed such a document.

  8. #8
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    Default Re: Do I Have Any Legal Ramifications if My Company Chooses to Not Pay My Commission

    Quote Quoting georgiaworker
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    The language in the contract is written in a way to give them COMPLETE authority to change, reduce, or eliminate commission AT THEIR DISCRESION. I have consulted an attorney and he said that the way the contract is written there is nothing I can do. I am looking for some other option!! Something out of the box, I guess.
    There is a difference between your earning a commission, and your employer changing its compensation structure after-the-fact to take away your commission, and your not having yet earned a commission but having your landlord change the compensation structure before it is earned (even if you're most of the way toward earning it). Which is the scenario we're discussing?

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