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  1. #1
    Join Date
    Mar 2017
    Posts
    1

    Default Can Your Job Change the Terms of Incentive Compensation Retroactively

    My question involves labor and employment law for the state of: California
    I have a labor commission date set to recover an unpaid incentive compensation. My incentive compensation contract/agreement (in writing) does not state if there would be any exclusion of type of business reported; I have the emails to prove when I was first notified that an exclusion would take place: 6 weeks after the end of the Q2, and the employer has denied Q2 incentive compensation.
    what California law or code or regulation can I reference that states employer can’t change the terms of incentive compensation retroactively?

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Changing Terms of Incentive Compensation Retroactively

    There isn't likely to be any code.

    Your contract is what regulates the agreement.

    does not state
    A lot of people make that mistake. Because a contract "does not state" something specific doesn't mean that there isn't other wording in the contract that may indirectly allow the employer to make the exclusion.

    You have to have the contract reviewed in its entirety.

    You can upload it to photobucket or some such and post a link to it here if you like. Redact any identifying information.

    Or have it reviewed by an attorney.

  3. #3
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Changing Terms of Incentive Compensation Retroactively

    California generally will protect you on work you've already done. I.e., they can't retroactively take away a commission or incentive you've already earned/qualified for. They are free to change things going forward though.

  4. #4
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Changing Terms of Incentive Compensation Retroactively

    let your employer be the one who has to prove why they do NOT owe it to you. (Don't feel like you have to prove anything.) That will be based on the written agreement. And if they didn't exclude something, doing it retroactively generally won't fly unless they somehow notified you of a modification or this was some type of policy that you should have known about and they can prove it -- say for example they have a conflict of interest policy that says no sales to immediate family members or that no profit could be made off of them. That MIGHT override an incentive plan that doesn't have that exclusion, but that would be rare. And you are in the best state for employee labor rights.

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