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View Full Version : Promotion, with pay decrease but commission increase? Michigan


Missbrittanyg
01-30-2009, 06:09 PM
Hi I'm looking for assistance on my situation:

I was just promoted to assistant manager, from floor supervisor, at my work.
My pay as a floor supervisor was $9.00/hr. OR 8% commission of my sales, if my sales commission exceeded what I would have made by my hourly rate.
When promoted to a salary position, my pay was reduced to $8.75/hr. ($350/wk) WITH 10% commission of my sales that surpassed a $3,000 threshhold. Meaning everything I sell after $3,000/wk. I receive 10% commission of those sales.
This is a retail company with many locations in the surrounding area. A close source told me that in their LOWER volume store (within the same company) they received $9.40/hr with 10% commission after being a floor supervisor promoted to assistant manager, however this was a pay increase for them.

My main question is this, was it right for them to lower my hourly rate and raise my commission?
They continue to tell me that I'm not looking at it the right way, that I'm focusing on the fact that my hourly rate was lowered. They are telling me I need to realize that I will be making 10% commission on everything after $3,000 worth of sales.
My take on it, though, is this; In a position with more responsibilties, and a higher position in the management chain, I should have been given an actual raise in my hourly/salary rate, because commission is not a guranteed amount. That is the variable. My set rate should be higher with a promotion than what it was at my lesser position.


If someone can please assist me in clarifying labor laws and/or determining whether or not what they have done to my pay is allowed/right, I'd greatly appreciate it. I feel as though they are taking advantage of me. :(

db20
01-30-2009, 06:19 PM
I never been in sales but 10% on every dollar over $3000. sure sounds like a lot money.

Missbrittanyg
01-30-2009, 06:22 PM
But the fact remains that I received a pay decrease in my weekly rate with this promotion. I was working the same hours as I do as assistant manager. On top of that, I am in a higher volume store than my posted example, who received a weekly rate raise with the same promotion as I received, and my weekly rate was lowered.

Missbrittanyg
01-30-2009, 06:25 PM
Also the commission over $3,000 worth of sales works like this;

If I sell $3,400 in a week, I receive 10% commission on $400.00 of that $3,000.
I receive 10% commission on every dollar AFTER $3,000.

Marketeer
01-30-2009, 07:09 PM
Unless you have a employment contract stating otherwise, the employer can lower your salary on a going-forward basis (not on hours already worked) as long as it does not drop you below the applicable minimum wage. So, no, there's no law that states that they can't lower your salary. There's also no law that says that the employer has to pay employees the same. The law is that employers can't pay employees differently on the basis of a protected characteristic (age, gender, race, etc.). The difference in your hourly rate could be because the person in the other won't have the opportunity to make as much in sales as you will.

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