commissions calculated differently and notified at the end of the period in question

[mcompton1973]

Here is the situation. we sell a service, and when we do, we are paid commission based on 12 months of revenue minus anyone that did not continue their service the full 12 months that we were already paid on.

Commissions earned in one month are paid the 2nd pay period of the following month.

In Feb I earned income based on the current system...when I got my pay in mid March, it was considerably less then what I was expecting, the explanation was that we changed how we calculate the amount earned and this was the new way of doing it.

At the end of March, I said ok, based on the formula you gave me, and how my pay was calculated in Feb...this is what I expect to get paid. At that time I was told, no...we actually made a mistake and so it will be less then that as well.

I understand there is probably a law allowing them to change a commission plan, but can they change it AFTER the pay period it will affect is over?

i.e. is it legal for them to change Febs pay plan in March?

 

[Patricia_Young]

Probably not, but since this are commissions and not your base salary or hourly rate, I don't know if the state DOL would take a complaint. You can call and ask them.