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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 18813
Experience:  Employment/Labor Law Litigation
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I'm in sales - base and commission. Based on our percent to

Customer Question

Hi - I'm in sales - base and commission. Based on our percent to goal we are paid a percentage of our revenue. My company implemented a dock in commission if we do not hit our new business goal.. So we have an overall goal - say if I sell 100k and I'm 100% to goal I would receive 10% commission. But even if I hit 100 % and don't meet my new business goal Ian docked 1 % and if I do not sell certain positions in the publication I am dicked another .5%. This has been a significant amount - is this legal in Arizona?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 1 year ago.

It's not illegal, as long as you have been made aware of the sales requirements in advance. By that, I mean that they can't look backwards in time and say "all those sales from the last quarter are now being treated under this new system we're starting today).

Unless you have a contract of employment that specifically states that your terms of employment cannot be altered without your consent, those terms can be altered at any time. The only restrictions are that you must be made aware of changes before they are implemented and you must still make more than minimum wage per hour.

Now, if the cut in pay is significant enough, on the order of 33% or more in total reduction in pay, that gives you the ability to give the employer an ultimatum that if the pay is not increased you'll be forced to leave. The purpose of this is to set up the ability to quit and yet still get unemployment.

Regrettably, that is your only recourse here other than simply accepting the new payment system.