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Not paying my residuals or by company employing me

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  • Not paying my residuals or by company employing me

    I am an account executive for a company that bought company assets from the company I worked for after a chapter 11 (all old comp plans were deemed null and void by judge so I have no recourse against old co)

    The new owners own several companies in the same industry but chose to keep this company intact using same name etc and kept employees on same compensation plan paid by same co name (new LLC)(company A)

    My income was a combination of salary, residuals and upfront bonus. I was thinking of leaving to start my own company and the new COO personally promised me that I would keep my residuals if I stayed. Foolishly I didn't get this in writing, but I did get in writing that I would be employed for next year at same salary by company A.

    Although all other employees of company A are still being paid by company A, After several months two coworkers and I(we had the highest residuals in company) were told that we had to become part of the smaller company they own (company B) and work for them on their compensation plan which consists of same salary and a small upfront commission for every deal we brought in and no residuals,
    I was told i would make the same amt of money because this new company is automated and it takes about 1/4 of the time to board a new acct. My residuals (which at that point were at about 45K per year) were taken away, even though the company is still benefitting from my work. My two coworkers were fired shortly after, and I do not benefit from Company B's automation because all the work I am doing is still for company A that does not have an automated system.

    I am still working for the same company(company A) , still have same email,title, use their leads and legal paperwork but am being paid by this other company (company B.) based in another state that has another name, accounting, less benefits and lower compensation plan.

    This seems to me like a clear ploy to keep my residuals.( On previous plan this would amt to about $120,000 over 4 yrs calculated modestly with very high attrition)

    Do I have any legal recourse?

    Does it make a difference that company A signed a renewal of my position (although with only the salary spelled out and company B is paying me that salary)
    They are still benefitting from business that i brought in previously but took away my residuals, I am being paid by lower paid companyB but still doing ONLY work for company A., and some reps (who ALL had much lower residual income because they didn't bring in as much business) are still on old comp plan.

  • #2
    You should talk to a lawyer who is well-versed in the employment laws of your state. In most states, employees can be terminated at will. A corollary of the termination-at-will concept is that an employer can change the terms of employment at any time, since he could have terminated your employment and offered you employment under the new terms.

    Of course, if there is a binding contract which specifies compensation for a period of time, the employer cannot change the terms during that period. If your the "writing' you received relating to the one year of employment by Company is one year contract which specifies the terms and is binding, then you may have rights for whatever time is left of the one year period.

    A lawyer is going to have to see everything you have in writing and explore what you are told. No one can give you sound advice without that information.

    Good luck.

    The lawyer will certainly want to see the
    David K. Staub (www.illinoisbusinessattorney.com)
    Forum posts are not legal advice, are for informational and educational purposes only, and are not a substitute for proper consultation with legal counsel.

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    • #3
      duplicate post
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        Posted & answered under Labor Law forum -- refer to that thread & post any add'l. answers there. Thanks.

        http://www.laborlawtalk.com/showthread.php?t=276325.

        (Recvd. PM asking where original thread was.)
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

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