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My company announced a pay plan change on Aug 3rd, to modify…

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My company announced a...

My company announced a pay plan change on Aug 3rd, to modify it to not paying commissions until payment received, they made this retroactive to Aug 1st, we have had net 30 billing every year I have been here. while they do have in writing that they can change the plan at any time, I was under the impression that they have to start any new amendment to the 1st of the month so as to not encumber deals that had already been closed. I sold over 200% for the month of august, 42817, and they adjusted it down to 17500 and only paid me 1509 in commission, whereas it should have been 14000, what are my options

Lawyer's Assistant: Have you documented this or discussed it with HR?

Yes, and had a meeting with my sales manager and the SVP of slaes

Lawyer's Assistant: Is the employment agreement "at will," union, full time or part time?

State of ga, right to work state

Submitted: 8 months ago.Category: Employment Law
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9/28/2017
Employment Lawyer: ScottyMacEsq, Lawyer replied 8 months ago
ScottyMacEsq
ScottyMacEsq, Lawyer
Category: Employment Law
Satisfied Customers: 18,160
Experience: Licensed Texas General Practice Attorney
Verified

Thank you for using JustAnswer.

I'm sorry to hear about your situation. Where they have it in writing that they can change it at any time, does it say that they can change it retroactively?

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Customer reply replied 8 months ago
no
Customer reply replied 8 months ago
it also states on page 3 that they cannot modify the plan without it in writing and approved by the SVP of finance
Employment Lawyer: ScottyMacEsq, Lawyer replied 8 months ago

Which I assume didn't happen?

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Employment Lawyer: ScottyMacEsq, Lawyer replied 8 months ago

Thank you for that additional information.

The first thing that you need to know is that Georgia is an "at will" employment state. At-will employment means that without a contract, you have no contractual or other right to employment with the company. The company is entitled to fire you for any reason: a good reason, a poor reason, or no reason at all--as long as the company does not fire you for an illegal reason (race, gender, age, religion, etc...). But it extends beyond firing, to hiring, promotions, demotions, wage cuts and raises, disciplinary actions, and even scheduling. Unless you can show that this was done in violation of a contract, union agreement, or a clear violation of an unambiguous and binding clause against the employer, or that it was done because of some minority status (age, race, gender, religion, disability) that you have, then they do have this discretion.

"Right to work" pertains to unions, meaning that you don't have to be part of a union as a condition of employment. In non right to work states, there can be a "union shop" that makes union membership required to be able to work there. So right to work likely has no applicability here.

An employer does not have the right to change a compensation plan retroactively. A payment plan can only be changed for services that have not yet been rendered. This means that if you earned the commissions under the initial compensation plan, you are entitled to that commission under that plan. It CAN be changed at any time unless the previous contract / policy says otherwise (and then only under the terms of the plan). You are entitled to be paid according to the compensation plan in effect at the time you earned the commission. The employer may change future earnings and calculation of future commissions, but may not change that which has already been earned.

This needs to be communicated to them, and that they should check with their legal counsel to verify this. If they still don't pay, you need to contact an attorney in your area that deals with employment law cases. Go to www.lawyers.com or www.legalmatch.com to find an attorney in your area. You should be able to find one that will give you a free initial consultation and better advise you of your rights, any problems with your case, likelihood of success, how courts are treating cases such as yours in your area, and what you should do next.

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable.

Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Look for the stars on your screen (★★★★★). You may need to scroll left/right/up/down to see these stars, but note that the rating is what closes out this question, so it is necessary that you do so.

Thank you, ***** ***** luck to you!

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Employment Lawyer: ScottyMacEsq, Lawyer replied 8 months ago

Did you have any other questions before you rate this answer?

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