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LegalKnowledge
LegalKnowledge, Attorney
Category: Employment Law
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Experience:  9+ years handling Legal, Real Estate, Criminal Law, Family Law, Traffic matters.
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I received an offer letter in writing from my present

Customer Question

I received an offer letter in writing from my present company about six months ago which I accepted. I just found out that they changed the terms from salary to 100% commission without informing me, is that legal?
Submitted: 12 days ago.
Category: Employment Law
Expert:  legalgems replied 12 days ago.

Hello! I will be reviewing your question and posting a response momentarily; if you have any follow up questions please respond here. Thanks!

Expert:  legalgems replied 12 days ago.

The company changed the policy after acceptance of a salary?

Expert:  legalgems replied 12 days ago.

What type of position would this be for?

Customer: replied 12 days ago.
Not that I know of, the company did not change its policy. It is business development position>
Expert:  legalgems replied 12 days ago.

So the initial offer was for commission only (as opposed to them offering a salaried position, that being accepted, and then unilaterally changing it to commission)?

Customer: replied 12 days ago.
No it was a salaried position. The commission would kick in after a certain amount is sales was achieved.
Expert:  legalgems replied 12 days ago.

Basically commission only pay structures are legal; please see:

https://www.dol.gov/general/topic/wages/commissions

However, the employee must be compensated for time spent at employer mandated meetings, for example pursuant to Gonzales v. Downtown LA Motors, 215 Cal.App.4th 36 (2013), which held that a commissioned employee must be separately compensated for time spent under the employer's control performing tasks that are not compensated by the commission structure.

If the employer use to treat that position as a salaried position, and then later amends it, unless there is a contract obligating the employer to the employee, the employer is free to change the terms of the compensation. Furthermore, an employer cannot retroactively change the payment method for closed deals; they can only apply going forward.

also please see:

http://www.dir.ca.gov/dlse/FAQs-NoticeToEmployee.html

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Information provided is for educational purposes only. Consultation with a personal attorney is always recommended so your particular facts may be considered. Thank you and take care.

Customer: replied 12 days ago.
It was a salaried position to start with not commission, it was changed to commission without notice. I thought that my employer needed to inform me of the change not arbitrarily changing it and I find out when I checked my bank account that I did not receive my bi monthly payment.
Expert:  legalgems replied 12 days ago.

They would need to provide notice; the employment contract is a contract- so while it can be changed, it needs to be with consent of both parties and any changed would not be allowed to occur prior to the agreed upon date. If the employee refuses the commission change, the employer is free to terminate the employment relationship at that point (unless there is a written contract to the contrary).

But you are correct that it cannot be unilateral, nor can it address prior periods-ie not retroactive application.

Customer: replied 12 days ago.
Hi, please opt out from the question oage, i need a different answer from a different Expert. thanks
Expert:  legalgems replied 12 days ago.

certainly; thank you for using justanswer; someone should be with you momentarily.

Expert:  LegalKnowledge replied 12 days ago.

Good morning. I see you requested another expert and I am happy to try and help. What can I do to assist?

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