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Patrick, Esq.
Patrick, Esq., Lawyer
Category: California Employment Law
Satisfied Customers: 12921
Experience:  Significant experience in all areas of employment law.
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Employment Law question

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Employment Law question...hired in 2010 for a collection agency in which signed agreement was on a commission basis. Well as determined by the president 2/2012 company not doing well so took all commission away and now on bonus schedule for 5 different categories. Also initial agreement was after a year of employment get 1 week vacation, had health insurance, and several holidays. Now since feb, my vacation is down to 2 days, several holidays we had last year are no longer (gave us two float days to use instead) and also no health coverage. He gave the company new agreements to sign in which we did not. Is this legal he can do this? Also to note we have asked repeatedly for the bonus numbers and how he configures the bonus schedule and have not received 1 since commission was taken away.

Hello and thank you for entrusting me to answer your question. I am very sorry to hear about your employment situation.

Regretably, an employer retains the discretion to change an employee's compensation structure, reduce vacation and terminate health coverage, absent an express contractual guarantee to the contrary. This tremendous freedom stems from Labor Code section 2922, which provides that employment in the state of California is "at will," absent an agreement to the contrary. Courts have interpreted this to mean that, since an employer retains discretion to terminate employees for no reason, he or she also retains the authority to dictate the terms of employment and change them at any time.

I am very sorry to deliver this news to you, as I realize it is not what wanted to hear. Nonetheless, I trust that you will appreciate my limitations is explaining how the law actually operates under these circumstances, despite the law not being favorable to your circumstances.

I sincerely XXXXX XXXXX this information helps you and I wish you the best.

If you do not have any further concerns, I would be very grateful if you would give my answer a positive rating and click submit, as this is the only way I will receive credit for assisting you. If you have any additional concerns that you would like me to address, please feel free to let me know by hitting the REPLY or CONTINUE CONVERSATION button and I will be more than happy to continue assisting you.

Finally, please bear in mind that none of the above constitutes legal advice nor is any attorney client relationship created between us.

Thank you and very kindest regards.
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