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  1. #1

    Default Independent Contractor Territory Realignment Deduction Of Commissions

    I am in the state of Michigan and work as an independent contractor for a medical device company. I have worked for this distribution for 6 years, and a previous distribution for 4 years prior too, representing the same product line. Although I signed an independent contractor agreement, that included a non compete, established territory and the right to change my territory, this was never signed by the distributor. The original contract was for a 60/40 split in favor of myself, IF I reached 100 percent of my goal monthly, he did not sign this but did pay this for the first year, which was 2002, then began to pay me only 50/50 and insisted that the 60/40 split ended when the company didn't reach bonus. He recently, 2007, asked me to resign a contract reverting to a 50/ 50 split, and demanded that I signed this and inferred he would not pay me if I didn't have it in his office by a January 27, 2007 due date. At the time my attorney had a family crisis and his child ended in the ICU. I informed the company that this was the circumstance and have emails to back this up. He said that if he didn't receive it, he was not able to do payroll. I changed this number to 80 percent of the profits, remoived some verbage and signed and sent the contract back without the advice of my attorney. Again, I did not receive a signed contract back from him,and he paid the 50/50. In 2006 this distributor opened a warehouse and hired another rep on my side of the state and began taking 1500.00 from my paycheck to cover his wages. Again, this was not agreed to and although originally was pitched to me as a service rep, I later found he was in fact a partner in this stocking distributor. I then insisted that he stop taking the money from my paycheck and he decided to cut my territory in half, move my largest customer to his territory and pay me from this warehouse stocking distributor. This reduced my income by about half, and to the parent manaufacturing company made my sales look as though they had decreased several percentage points. I have always been a top performer and now am in the botton according to his grossly misleading numbers. For the first 4 years, I worked his products 100 percent of the time and his products alone. He dictated to me the territory I sold in and i was responsible for maintaining the numbers and reporting to him with goals, business plans and forcasting. When he began taking money from me, I excersiced my independent status and began to carry some surgical products on my own. He then came to me and tried to insist that I turn these proiducts over to him because it was confusing for the new reps, and I refused to do this. I later and since consistantly find monies, and accounts he has moved to the new male rep( his partner) that is in my new assigned territory. When I confront him about this, he tells me it is his right and If i don't like it to leave. He is trying to force me out of a territory that I developed form the ground up, and because all commissions and reportings come into him, he plays the puppet master and determines which rep he gives what. I am a 43 year old single mother of 3 children who is in soul support of my family. I do not have any other means of an income, and I tell him I will never quit. He has now again come to me for the third time to have a meeting about my surgical products I carry and tells me that I either need to pick his stuff up, or leave. He gave us the option a few years ago to take his products and stood in a meeting and said there would be no ramifications if we did not. Now he is renigging and is looking at the income my territory is generating to move in a new rep and try to build his surgical business in my territory. Please advice me, as I have been trying to research this and talk with attorney's with no prevail. They keep telling me that if he did not sign the contract that there is not a binding agreement even though I did sign the contract and have been being paid by him for 6 years??? but I can't believe that he can steal from me, move my largest account around take half my territory with no recourse, either civil or criminal??? I also feel that for the first 4 years I was an employee instead of an independent contractor despite the contract I had to sign, and feel the stealing is criminal. We are talking about 60,000 or so I know about and who knows what I don't know about. This has caused great mental and physcial stress on me and my family, and has greatly effected my performace. Although, I still manage to be within stricking distance to a goal, he keeps taking from, I have proof of him moving accounts after the division in my territory, which are in the heart of my new territory and now he claims they are house accounts and he will determine the rep split on these. Please advice me on how I can proceed and what area of law I need to proceed in? He has requested a meeting again and prefaces it with we either need to work this out or part our seperate ways. I am fearful he is going to fire me if I don't agree to give up my surgical to do his. and this would put me into bankruptcy. The years he deducted the 1500.00 from my check required me to pay some expenses with credit cards and I have debts. He also has made several notations that I have been a hard to work with over the past 2 years, and unevitably will be the reason for my termination. I have worked hard, gained business and continue to gain business. My customers like me, and they would disagree I am hard to work with. Most would tell you the only reason they do business with this company is because of me, but I know he is trying to cover his bases. He has been dishonest, poached my business, taken money from me and just expects me to do nothing, which up until now, I have done nothing other then express my concerns for being treated unfairly. Any help would be appreciate and the sooner the better as my meeting is Monday at 10am

  2. #2
    Join Date
    Jan 2006

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    You writing a novel? White space and paragraphs are good even there though.

    too long and too dense for most to actually stop and read.

  3. #3

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    When seeking legal advice, details are always good. But thanks for the English lesson

  4. #4
    Join Date
    Jan 2006

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    You are welcome.

    As you can see, there are no other responses. Those that offer advice here volunteer what they do offer. I was merely trying to let you know that making your situation a bit more comfortable in reading would cause others to be a bit more interested.

    Your choice.

  5. #5

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    Thank you , I am new to this site, I will repost the short of it.

  6. #6
    Join Date
    Sep 2004

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    Apparently back in 2002 you had an original offer for a 60/40 split, didn't meet sales targets, and had it go to 50/50. You have been in consultation with your lawyer about this, and have chosen to keep working at that level of compensation.

    Then in 2007 you were asked to sign a new contract. Rather than doing so, you changed the terms from a 50/50 split to an 80/20 split in your favor along with a few other changes, returned the contract with those unauthorized changes. This has apparently angered the company, and they've changed your territory and have been enforcing rules requiring you to reimburse them for certain expenses. Once again, you appear to have been in consultation with your lawyer throughout this time.

    If your lawyer can't find any legal cause of action resulting from their actions, the odds are low we will be able to figure out your remedy from a giant block of text. (It's not about being "new to this site" - it's about making it feasible to read and understand what you're trying to tell us. That applies in any context.)

    If you care to share what your laywer told you, maybe somebody can react. But be careful about that, as among the instructions you ignored when posting, such as being concise and using paragraphs, were the ones about not using a username that will identify you or disclosing information that could identify you. I suspect that if the medical company came across this thread they would know exactly who you are.

  7. #7
    Join Date
    Dec 2007

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    I too have difficulty understanding what it is you are trying to say and my eyeballs are now twitching. If I get this correct, you were asked to sign a contract, didn't refuse but changed the conditions of it and sent it back hoping to, at the minimum buy you some time until your attorney can get involved. You have a non compete clause and since you can't come to an agreement, he has reassigned the territory that you cover.

    Am I missing something? If I'm not, then I'm actually suprised that this company is willing to even negotiate with you at all.

  8. #8

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    I was well over goal always for the majority of my employment He decided on his own terms to change the compensation, and this was the start of the problem. The territory realign was to make room for a warehousing partner, that I was required to pay.... As an independent contractor. I was also promoted to an area VP. during this time Which makes me question my employment status. Ease up on the paragraph already, I'm new to the site and didn't understand that my user name would also be the posting name Your brutal!!! My lawyer says, wait till he fires you.

  9. #9
    Join Date
    Jan 2006

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    carrying surgical items; it seems your employer (in the post) also provides similar items. This could be in direct conflict with your non-compete, if it is written to include time during your current employment.

    unless your contract specifies your territory and he is acting against the contract, nothing wrong there.

    you changing the terms of the contract; unless he signed in acceptance, not worth anything. His actions show acceptance of a contract (as long as he is acting according to contract) and your continued acceptance of pay that is in keeping of the contract they presented to you would show your acceptance to an extent as well.

    60/40 v. 50/50; what does the contract tell you about this?

    paying this other person; not your cost unless your contract allows it. He cannot arbitrairily deduct from your pay. He is legally required to pay yout he total amount per your contract.

    promoted to a VP of some sort? definately throws a wrench in to the IC status.

    IRS form SS-8 will get you an answer.

    You may want to try to contact the admin to alter your screen name.

    Unless you have a definate term contract, I don;t see any reason the guy cannot end your contract at any time he wants.

  10. #10

    Default Re: Independent Contractor Territory Realignment Deduction Of Commissions

    At the time of the split of the territory he gave all the option to take his surgical items or not take them. He idicated that no ramifications would occur. I chose not to take his. Only when he split the territory which he was entitled to do via the contract, (although it agreed to 3 months severence, which didn't happen) did I decide I needed other products to supplement the pay going from 8,000/mth to 4000/mth. I am in Michigan and they do have MATA which only allows non competes in form of employee employer relation.

    The status of my employment is a huge question I still have. This will come into effect if he fires me because I will not be able to collect unemployment.

    *I believe the first 4 years I was working as at the least a statuatory employee. Even though I was required to incorporate to be in compliance of the contract, the work I did for him was full time, all of his products, he was the only one that paid me, and he refussed to remove me from a company owned server, when he doesn't pay for cell phone or blackberry use.

    *He had email conversations with me daily, specified sales goals and dictated what products he wanted us to sell to reach those goals. He then threatened to relieve me of my duties if I picked up other products or reduce my commissions because I was not working for him full time

    * He promoted me in 2006 to Area Vice President of his company. He emailed all that the new commission structure for this position would be 55/45 and 60/50 in the event of my goals being reached but never followed through.

    * I only changed and signed new contract when he forced me to sign it indicateing he was not going to pay me if I didn't.

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