Continuous Changing of Commission and Quotas

R

Rcstone07

New Member
Jurisdiction
California
Greetings!
I would like to ask for some legal expert advice on their experience with employer wage and hour scenarios regarding commissions and quota expectations within our corporation.

Since the start of the year, we have been forced to sign or not get paid on 4 renditions of the commission structure. Additionally, our quota is now not definitive and is set to change to get higher each month.

Our company brought in the organization the McKinsey Group to assist in our payment structure, and ever since, we have lost thousands per month while having to achieve higher quotas that consistently go higher monthly while designing the commissions to pay less and less each month should that representative achieve the exact same results each time.
***The Commission structure also requires that a partner who has been assigned to our team, to close a specified amount each month for us to be able to achieve the final 15% and hit 100% of quota. In turn, we are now forced to rely on another's actions for us to achieve quota, otherwise we are liable for not hitting that assigned quota which leads to write ups and PIP's.

Can anyone verify that this method of consistent quota re-arranging and commission redesigning that's framed to pay less to the employee yet require more is applicable?

Many thanks for your help!
 
Your question doesn't make much sense as phrased. If you are concerned that your employer is violating the law, I suggest you take all relevant documents to a local attorney for review and advice.
 
I'm guessing that, as long as you are paid at least minimum wage, and you don't have a written contract that is being breached, your employer can structure your pay as he pleases, as long as he notifies you of the change going forward.

Your remedy is to seek employment elsewhere.
 
Thank you for the review. There are a few questions in turn here.
1. Can an employer change pay structure during the middle of a month and retroact it to to the beginning of the month requiring more effort for the same or less pay?
2. Can an employer require an e employee to rely on another employee to gain full assigned attainment?
3. Can an employer change quotas required monthly at any given time without further notice leading to less payout to the employee should they not hit the higher newly assigned quotas?
4. Lastly, Can an employer take away from base pay that is assigned at the start of employment due to commissions?
 
Rcstone07 said:
Can anyone verify that this method of consistent quota re-arranging and commission redesigning that's framed to pay less to the employee yet require more is applicable?
Click to expand...

Read the following information, rejoice, and get thee to a nearby DLSE Office.

You can also file a claim online:

https://www.dir.ca.gov/dlse/forms/wage/english.pdf

DLSE Form 1 allows employees to make a claim for wages and penalties concerning any violation of California wage and hour laws that fall within the Labor Commissioner's jurisdiction, including:

Unpaid wages,⁠ Unpaid commissions,⁠ Unpaid vacation wages,⁠ Failure to pay minimum wage,⁠ Failure to pay overtime,⁠ Failure to make payments for agreed benefits,⁠ Failure to make timely payment of wages after termination,⁠ Meal and rest period violations,⁠ Unpaid split shift premium (required when two distinct work periods are separated by more than a one-hour meal period),⁠ Unpaid reporting time pay (required when an hourly employee is required to report to work but is given less than half of a usual day's work),⁠ Unlawful deductions from a paycheck,⁠ Unreimbursed business expenses,⁠ Late payment or nonpayment of final wages,⁠ and Dishonored payroll checks.⁠
DLSE Form 1 cannot be used to request an adjudication of claims relating to fraud or unfair business practices. Those claims are beyond the jurisdiction of the Labor Commissioner.⁠ They would need to be raised in a lawsuit filed in court.

It is important for the employee to identify all wage claims against the employer that the employee might have. The failure to state all wage claims might prevent the employee from raising claims later that could have been resolved in the same administrative proceeding.⁠

- Source: https://wrklyrs.com/WageClaim#p33





California law permits employees to enforce their wage and hour rights by filing a complaint with California's Division of Labor Standards Enforcement (the DLSE).

The wages and hours of California employees are protected by both state and federal law. Those laws, however, don't enforce themselves. When labor laws are violated, many workers choose to file a wage claim.

A wage claim is a type complaint that workers can file against their employer (or former employer) to recover money they are owed.⁠ They provide a simple process for workers to legally prove they are entitled to pay.

This guide explains the process of initiating and participating in a wage and hour dispute before California's Division of Labor Standards Enforcement⁠ (the "DLSE").⁠ It's not intended as legal advice and shouldn't be relied on for that purpose.

- Source: https://wrklyrs.com/WageClaim#p1

Employees who want to recover money for violations of wage and hour laws have options. The most obvious is to raise the issue with their employer and resolve it informally. Often, however, employers don't want to meet their legal obligations.

When employers fail to pay their employees' wages in full and on time, employees usually have three choices:

File a lawsuit in court, File a wage claim with a federal agency, or File a wage claim with California's Division of Labor Standards Enforcement (the "DLSE").⁠
For many employees, a wage claim with the DLSE is the easiest or best option. All three are explored in more detail below.

- Source: https://wrklyrs.com/WageClaim#p5
Wage Claims with the DLSE
In addition to federal protections, employees in California are protected by the Labor Code and regulations written by state administrative agencies.⁠ Those laws cover matters like:

The time and manner of paying wages, Minimum wage requirements, and Mandatory overtime pay.⁠
Through the wage claim process, the DLSE has the power to investigate and hold a hearing on employee complaints about violations of these laws and regulations.⁠

The DLSE can decide any question that is within its jurisdiction.⁠

- Source: https://wrklyrs.com/WageClaim#section_1-3







Here's CA law regarding employees paid commissions.

Employees can be paid for their work in several ways. Hourly wages and fixed salaries are the most common examples. Some employees are paid a commission basis.

All California employees, including those who earn commissions, have the right to be paid for their work. They also have the right to be paid on time. And in some cases, they have the right to be paid overtime.

This article explains the rights of employees paid on a commission basis in California. Since each situation is different and the law can be complex, employees should seek the advice of an employment lawyer if they believe that a commission has not been properly paid.

- Source: https://wrklyrs.com/ComSales#p1

https://www.worklawyers.com/commission-payments-california-employment/

Sales Commissions are a form of wages paid to sales employees. Sales Commissions are calculated and paid based on a proportion of the amount or value of the goods or services sold.

California law requires that sales commission arrangements must be spelled out in a written agreement signed by the sales employee. Sales commissions must also be paid timely.

California Sales Commissions Guide | SF Employment Lawyers
 

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