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  1. #1
    Join Date
    Jun 2018
    Posts
    3

    Default Employer Changed Commissions Plan to Not Pay Me

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

    I sell cars. I am on documented commissions plan that states the 'Employee is paid ONLY upon physical delivery of the vehicle'. My employer is a private company.

    I sold a car, the customer came in, gave us a check, and took physical delivery of the vehicle on May 1, 2018. I get a 'fast start' bonus if I sell 4 cars the first week of the month. This vehicle got me to the 4 cars in the first week of May, and a $200 bonus.

    PROBLEM:
    My employer then told me they 'took the sale in April', and I wouldn't get paid in May, nor would I get my May 'fast start' bonus.
    Worse, I get a $1500 bonus each month if I sell 9 cars. This same vehicle that was sold, paid for and physically delivered on May 1, 2018, was my 9th vehicle of the month of May. My employer told me I would also not be receiving my $1500 bonus for selling and delivering 9 cars in the month of May.

    Is what they did legal? Does it violate either my employment and compensation agreement or GAAP/other accounting principles? or laws?

    Thank you.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Employer Changed Commissions Plan to Not Pay Me

    I have not read your employment or compensation agreements to know whether they have been violated. When you showed those documents to a Minnesota attorney, what did that attorney say?

  3. #3
    Join Date
    Jun 2018
    Posts
    3

    Default Re: Employer Changed Commissions Plan to Not Pay Me

    I started here and have not reviewed it with any attorney.

    Net is, I am owed $1700, which would be eaten up in 4-5 hours by an attorney who might look into it...

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Employer Changed Commissions Plan to Not Pay Me

    It is possible for the commission to be earned upon the date of the sale, but for the commission to become payable only when the buyer takes possession. Thus, depending upon all of the terms of the commission contract / policy, if a car is sold in April but the buyer takes possession on May 1, the dealership may be able to validly assert that the commission on that vehicle was earned in April.

    Similarly, if there is a policy that you get a "fast start" bonus if you sell four vehicles in the first week of the month, but one of the sales occurred in a prior month, it does not automatically follow that you would get credit for that sale even if the commission becomes payable during that first week when the buyer actually takes possession of the vehicle.

    Nobody is able to interpret contract language that they have not had the opportunity to read.

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