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  1. #1
    Join Date
    Dec 2007
    Posts
    1

    Default New Pay Structure Signed Under Duress

    I was employed with company XYZ, in California, from May 2004 to Dec 2007, i resigned. I was an outside salesman and grew my territory nearly 50% during that time. Our pay structure was all commissioned based and that was fine with me as I was making great money. In April 2004 I was told with no warning that they were bringing in another person to become a manager in my territory and that my pay was to be cut from 20% commission rate to 4.5%. They presented me with a new compensation agreement in May 2007 but to be effective April 2007. I thought I was making full commission in April but was told that I would be under the new rates. I told them that isn't it illegal to change an employees pay/salary retro-actively and that I wasn't comfortable signing the new compensation contract and also back dating it. They told me that I did not have to sign it ... BUT... if you don't...(long pause) Then I said "if I don't then i probably would be let go" and the managers nodded their heads in agreement. I did not have any other job offers at the time and needed whatever income I could get so I eventually signed it but I crossed out their typed in dates of April and hand wrote May.

    I finally found another job that pays me close to what I was making, it took that long to find something comparable. My question is, since I was "forced" to sign that does that make that current contract null and void and can the old pay structure be argued to be in effect? If so, I should be able to get "back pay" and get the difference between the old structure (20%) and the new (4.5%). That totals between $40,000 and $50,000 for the 9 month period.

    Thanks in advance
    Inhiding, CALIFORNIA

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: New Pay Structure Signed Under Duress

    No.

    Many contracts have sections that are unenforcable yet the rest of the contract sontinues to be valid and fully in effect.

    In your case, you should be able to claim the portion of commissions that were back dated but nothing beyond that.

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