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change in sales commission pay plan

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  • change in sales commission pay plan

    I live in NY. I'll try to keep this short.

    In the past I was paid straight commission on goods delivered. Recently the organization I work for (I work for a training company, as an employee of the company) changed our commission plan from being paid on goods delivered to payment of commissions once payment is received from the customer. I have not received written notice (an updated compensation plan) other than an informal internal e-mail of this change.

    As this new policy is phased in over the course of 3 months I am in a position where $120,000+ worth of delivered goods have yet to be collected (this number has been consistent give or take $10,000 for the last 3 months). This equates to approximately $15,000 worth of income.

    My main question is if I am terminated, quit my job or the company folds is this $15,000 due to me once the organization has collected this money for goods delivered while I was employed with this organization?

    I also have $150,000 in future business booked or sold (approx. $20,000 worth of potential income). Is there any recourse for these sold but not yet delivered goods if I am terminated or quit my job.

    I have been on the NYS Department of Labor web site but I have not been able to find the entire NYS labor law to review to answer this question on my own. The NYS DOL website does not seem very user friendly.

    Last edited by Jack Daniels; 04-14-2005, 05:26 PM. Reason: To Put NYS in the tile line

  • #2
    NYS Website

    I agree, re: the website. I could be wrong in the following (and so you will want to verify this with the state), but I believe that your employer can make the changes it has.

    If you feel that you have been shorted pay, you can contact the state. Complaints of violation of the wage and hour provisions of the New York State labor law should be made to the nearest office of the New York State Department of Labor, Division of Labor Standards or to the Attorney General’s Office, Labor Bureau at (212) 416-8700
    Lillian Connell

    Forum Moderator


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