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  • Employee Commission Plan California

    Ok, I posted in another section, but figured I would try in Cali law.

    We gave one of my sales people their first performance review in 4 years with the company. They received an increase to their base salary and the commission % was increased. This was effective April 1, 2008. The review was given by the direct manager (VP Sales), but the owner of my company said no changes to the commission until he is back in the office. The salesman was not notified of the owners comments. Well, we gave out the commission checks May 9th and the salesman lost it because it does not have his new %. It has been a week and the owner has not been in to discuss. I am running out of answers for this employee and not sure what his next move is. Any suggestions?

  • #2
    All the same people read and respond to all the employment law forums. When someone who knows the answer to your question gets here, they will respond. In the meantime, it confuses the responders when the same question is asked on multiple forums, so we ask that you post each question only once, okay?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      Sorry, just wasn't sure if I shoul post here in California. Understand and won't happen again. Thank you in advance for your help everyone.

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      • #4
        I don't think this issue would or could be addressed by federal or state law.

        The employee expects a raise, but the boss had not blessed it.

        There will be problems. Either the employee won't be happy or the boss won't, but it would have been a lot better if the issue was resolved one way or the other before any increase might have been paid.

        Does the employee understand that the boss has not yet approved the increase or has someone in his chain of command been too timid to tell him that there is a snag?
        Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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        • #5
          Sorry for the confusion. The boss (owner) met with the manager (VP Sales) and gave the ok on the new commission %. After the owner gave the ok, the VP Sales told the salesman his new % was effective April 1. The boss (owner) told the payroll girl not to make any changes and nobody informed the manager (VP Sales) or the employee until the check showed up in the wrong amount. The employee is not just expecting a raise he was told it was approved by the owner....

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          • #6
            This may, then, approach the level of verbal contract.

            Was the new commission put in writing with a start date?
            Not everything that makes you mad, sad or uncomfortable is legally actionable.

            I am not now nor ever was an attorney.

            Any statements I make are based purely upon my personal experiences and research which may or may not be accurate in a court of law.

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            • #7
              Since this seems to be where the answers are being posted, I deleted the other post.
              The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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              • #8
                Nothing in writing. The employee asked for it to be put in writing with his performance review. The manager (VP Sales) said it wasn't needed since it was already approved. I am worried the manager (VP Sales) got a verbal from the owner and moved forward, now our owner wants to back out of the deal after we already told the salesman it was a deal.

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                • #9
                  Originally posted by MIMJOE View Post
                  Nothing in writing. The employee asked for it to be put in writing with his performance review. The manager (VP Sales) said it wasn't needed since it was already approved. I am worried the manager (VP Sales) got a verbal from the owner and moved forward, now our owner wants to back out of the deal after we already told the salesman it was a deal.
                  If the salesperson takes this to court, it could go either way... but sounds like a great way to lose a good saleperson regardless of the possibility of trial.

                  This stuff spreads through the salesperson community like a cancer. You are on dangerous ground here.
                  Not everything that makes you mad, sad or uncomfortable is legally actionable.

                  I am not now nor ever was an attorney.

                  Any statements I make are based purely upon my personal experiences and research which may or may not be accurate in a court of law.

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