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TexLaw, Lawyer
Category: Employment Law
Satisfied Customers: 4430
Experience:  Contracts, Wrongful termination and discrimination
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I work fo an insurance agent and was told that if I do not

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I work fo an insurance agent and was told that if I do not make sales of finance products, I will not be paid commission for sales of auto insurance. Is this illegal?

Thank you for your question.

Other than commissions, how are you paid?

Is this a recent change in the commission structure for you?

Do you have a written employment agreement which sets the manner in which you are paid commissions?
Customer: replied 3 years ago.

There is a $1,000 monthly salary paid bi-weekly. I will have to check the employment agreement. The commission structure was verbally explained regarding the percentages of commissions on the products, however, there was never a mention of not being paid for not selling financial products.

Thanks for the response.

Essentially, unless you have a written agreement or some other written document which promises the commission structure to be set in a certain way, Michigan law allows the employer to change the terms of employment going forward.

So, if you were told that you would earn commission on all sales, but your employer has changed the terms after the fact, then you have a claim against your employer for unpaid wages based on the commissions you were promised. If there is no written agreement controlling the commission payments, the agency is free to change the terms going forward. This would mean that you are an at-will employee as to this issue, which gives the employer the right to change the terms of employment at its discretion.

Do you have a copy of the employment agreement, or a copy of the written employment policies from your employer?
TexLaw and 2 other Employment Law Specialists are ready to help you

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