QUESTION
How do I get the compensation for my commission if they decide to change the quota (signed in May) fiver days before it is due to me?
Asked on Jan 24th, 2022 on Business Law - Colorado
More details to this question:
My company pays Salespeople a commission on Sales that ship. We sign a document early in the year with the stated quotas to obtain for our commission to be paid out. Our payout is one month delayed due to book work done with our finance team. For the year 2021 our last commission check will be paid on January 28, 2022. Today, January 24, 2022 they have decided to change the quota numbers for one aspect of our commission payout structure to being a higher quota. They state that they can change the quota any time they please due to some restructuring. We have not been given an explanation of the change and the WHY behind the change, We signed the document in May 2021 and have not been presented with a new document to sign for any changes to the quota. I am now losing money due to the change. I feel as if they owe me for what I have done for the numbers in the original signed document and not a new quote to obtain.
1 ANSWER
You need a lawyer to mediate a solution, and possibly a litigator to sue them, if the losses are great enough. They had a contract with you, unless the terms of the commission clause state that they can change quotas from time to time, this is the modification of a term in contract, and that is like a new contract, it needs offer, acceptance, and consideration.
They modified the contract without your signing it, and no modification. You have a possible action, but unless the amount of commission they would have paid you is much higher than what they did pay you, you don't have reason enough to sue. It's not worth suing for a few thousand dollars, in other words.
Did you know that people switching companies right now are getting on average 5% more income per year after changing? If you don't have enough money lost, and regardless, I would start looking for a new job/career now.
Answered on Feb 08th, 2022 at 5:31 AM