eal1977
08-01-2004, 08:26 AM
:confused: My husband's compensation plan was arbitrarily changed from "base + commission" to straight commission. He was notified that the change would be effective 6/1 on 6/7. The compensation program was administered such that June's base was paid in June and June commissions were paid the end of July. His boss "forgot" to notify payroll about the change and he therefor received his regular "base" throughout June - which is now being "repaid" as draw. With employment at will, can an employer change comp plans in this manner in the 1st quarter of the month with no advanced notice to the employee? We live in Wisconsin (hub's territory) and the employer is located in Michigan.
:confused: My husband's compensation plan was arbitrarily changed from "base + commission" to straight commission. He was notified that the change would be effective 6/1 on 6/7. The compensation program was administered such that June's base was paid in June and June commissions were paid the end of July. His boss "forgot" to notify payroll about the change and he therefor received his regular "base" throughout June - which is now being "repaid" as draw. With employment at will, can an employer change comp plans in this manner in the 1st quarter of the month with no advanced notice to the employee? We live in Wisconsin (hub's territory) and the employer is located in Michigan.
How did your husband recieve the notice of the change of payment structure? Was the effective date and method put in writing? If so, I would suggest taking that to personnel and letting them know there was an oversight due to miscommunicatin and see if it can be cleared up that way.
Best wishes!
Sue
eal1977
08-01-2004, 08:36 AM
Sue - He was notified on 6/7 in writing on 6/7 that as of 6/1, his comp plan had changed. What has me bothered is that this essentially meant 2 months w/ no income for us - is it legal to make a unilateral chcange of comp plans in such a manner?
Sue - He was notified on 6/7 in writing on 6/7 that as of 6/1, his comp plan had changed. What has me bothered is that this essentially meant 2 months w/ no income for us - is it legal to make a unilateral chcange of comp plans in such a manner?
Unfortunately, yes is it legal for an employer to change compenstion amount for employees as long as it does not fall below minimum wage and there is no enforcable contract in place stating otherwise.
However, your husband can not be paid less than his original amount for hours worked BEFORE June 1, the date of the new compensation method.
You can contact the Labor Commissioner in your area to see if you have a case against this employer if they did pay him less than he earned for months previous to the new compensation amount.
Let me know if you have further questions,
Sue