on tuesday we were brought into a meeting by the owners of our company to find out that the company is closing 4 locations leaving only 1 location open. we were told that our services would no longer be required after december 31. since the majority of the people being let go were commision sales people the owners of the company said that as of friday that week the commision sales program would be done and that we would each be paid an hourly rate based on our year to date earnings with the company. since i was at 40,000 pay for the year and our work week was based on 43.5 hours i figured my pay to be nearly 20.00 per hour. on friday each person was contacted by the owner and given their pay rate for the remainder of the year. 14.50 per hour each person was told. how can they tell us that we are going to be paid one thing and then go back on the verbal agreement that we all accepted. can we fight this? if so where do we report them to?

That's the problem.

#1-it was a verbal agreement; therefore there is nothing to document the terms of compensation and the situations under which the salary can be changed and, even if there was something in writing, whether or not it would rise to the level of an enforceable contract is case -and -state specific. Verbal "agreements" have an even tougher time getting there.

#2-There is no wage and hour law that says your salary cannot be decreased and you have received advance notification, which is required in your state.

I'd start looking for other employment immediately, as the holidays can be tough for job searching. Is there any advantage to staying until the end; i.e., any severance pay or retention pay you'd miss out on? If not, I'd go when I found another job.

the only advantage that i can see to staying is that i will retain my unemployment benefits elegibility....and the fact that i wont have to start looking for a job that could just result in working through the holidays anyway....thanks for your reply