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  1. #11
    Join Date
    Jul 2008
    Posts
    7

    Default Re: Can a Commission Plan Change be Retroactive

    Thanks Cliff. Yeah, that is what i considered several months back. Unfortunately, I am leaving the company anyhow, so crap list isnt a concern anymore. There is also enough money on the table so legal fees arent the biggest issue. After doing more research, it sppears that CA courts grant companies to change a plan at any time moving forward, but not apply retroactively is it adversely affects the commission employee unless they agree. What I was actually looking for on this forum was someone familiar enough with the law to direct me to the actual LEGAL statute because it is so long i cant find it or most does not apply (i am not retail, fully commissioned, etc). I am a sales executive and full time employee. I understand people telling me to see a lawyer which i will do, and that they havent seen the agreement, but not withstanding, laws are laws and curious what those are, regardless of the agreement that i have. Regardless, my agreement, which i cannot post because it is 50 pages long, only has the statement that they can change the plan at any time (however, it is only during their fiscal year and they let it lapse for 6 months only to use that as an excuse that i didnt have a contract). However, agian i am a full time employee with a base salary, benefits, etc and if their excuse was that my plan had lapsed and my commissions were subject to whatever they wanted to pay, i was never notified that i didnt have a contract, and then what is the point of my having an offer letter and agreement on compensation when i started the company 2 years prior? Anyhow, just trying to find out what the law prescribes and where the statues are, regaless of what people think of my agreement (which shouldnt matter so much as it doesnt cover this area (lapsing, etc).

    Thanks,

  2. #12
    Join Date
    Aug 2007
    Posts
    3,835

    Default Re: Can a Commission Plan Change be Retroactive

    Quote Quoting teezeed
    View Post
    What I was actually looking for on this forum was someone familiar enough with the law to direct me to the actual LEGAL statute because it is so long i cant find it or most does not apply (i am not retail, fully commissioned, etc).
    --------------
    Anyhow, just trying to find out what the law prescribes and where the statues are, regaless of what people think of my agreement (which shouldnt matter so much as it doesnt cover this area (lapsing, etc).

    Thanks,

    Contract law is at times a BEAR. It would be almost an impossible task to try to "online" search such case law.

    You need to pay a visit to a law school law library of a College/University and sort through the Jurisprudence volume "Contracts" and read any case law that may help. West publishing co. publishes a lot of state's case law decisions with thier Key number digest system. I like those.

    Also, the Restatement of the Law has a volume on Contracts. Many courts cite when determining law if thier jurisdiction is unclear, or even clear, on such matters.

    Good luck!!

  3. #13
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: Can a Commission Plan Change be Retroactive

    Although the federal Section 7(i) exemption is out there, I am not so sure it would apply to this person's position unless it was a retail establishment, which has not been clarified. Unfortunately I know way too much about 7(i).

    There are two different things that 7(i) has to calculate if the exemption applies:
    (1) the person must be paid at least 1 1/2 times minimum wage for every hour worked
    (2) during a representative period, over 1/2 of total wages must be from commissions.
    Failure on either of those points will cause the federal exemption to be null and void (on the second one, it is null for the next representative period).

    As to how the contract reads and whether it can be changed retroactively, that is dependent on the details. I would suggest taking it to a local attorney.

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