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Joseph
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 4875
Experience:  Extensive experience representing employees and management
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Is it legal to increase my annual sales quota in Q4 in the

Customer Question

Is it legal to increase my annual sales quota in Q4 in the state of California? I did not have any other change in territory or accounts that are assigned to me.
Submitted: 1 year ago.
Category: California Employment Law
Expert:  Joseph replied 1 year ago.
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

Unfortunately, an at-will employer is free to change any circumstances of employment at any time for any reason with or without any prior notice, including increasing an annual sales quota in the Fourth Quarter.

This stems from the employment at-will doctrine, which is codified in California Labor Code 2922, which states:

"An employment, having no specified term, may be terminated at the will of either party on notice to the other. Employment for a specified term means an employment for a period greater than one month."

Unfortunately, since an employer has the discretion to terminate an employee at any time for any reason with or without prior notice, an
employer can also decide to increase an annual sales quota for any reason with or without any prior notice.

I wish I had better news to give you, but I hope you appreciate a direct and honest answer to your question.
Joseph, Lawyer
Satisfied Customers: 4875
Experience: Extensive experience representing employees and management
Joseph and 2 other California Employment Law Specialists are ready to help you
Customer: replied 1 year ago.
Also, what if the employer wants to charge back a commission. So back in January, I sold a $500k deal and received 100% commission on this. This is covered by another rep, who was also supposed to be double comped and receive 100% commission. The company messed up the agreement and rather than pay both reps 100% commission as originally agreed, they are forcing me to split $500k deal with that rep so now we are receiving 50% each instead of 100% each. I am still awaiting details as to why they would do this rather than just pay us both as originally agreed. Is it legal to pull back 50% of the commissions because of an internal accounting error? I am in the state of california
Expert:  Joseph replied 1 year ago.
No, it wouldn't be illegal if your contract stated that you would receive 100% commission. However, if it is the company's policy that when two reps are credited on the same deal they receive only 50% commission instead of 100% commission then that would be legal.

If the company does try to require you to pay back the earned commission, you can file a wage claim against the company for the amount that they are attempting to charge you back.

You can file a wage claim using the forms available online here:

http://www.dir.ca.gov/dlse/HowToFileWageClaim.htm

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