Unpaid Commissions

[vitasoni]

what can I do? I am in sales and I work for salary with commissions. My quota is based on what my assigned territory has done in the past year with a 8% accelerator. I feel I have been cheated out of commissions for the following reasons

1)- Reporting- for the past year my employer has not been able to accurately report revenue i.e, they are basing my quota on fasle numbers making it almost impossible to make commissions.
2)-They are changing the comp plans and "adjusting numbers" mid month which changes the way I get paid
3)- They have changed my assigned terrirtory 8 times in the past 2 years making it impossible to build relationships with clients in order to grow business
4)-They have duplicate accounts for example one account generated $50,000 in revenue last month and it is duplicated on 2 reps list and they are both being held responsible for that revenue.

Is any of this unethical behavior?? Some friends have told me to consult a lawyer but I don't know if my employer is breaking the law or just a bad employer that needs to get their act together. Any feedback would be greatly appreciated

 

[saleslaw]

It's all bad...

Your situation is what every sales representative experiences at some point. However, you need to do a couple of things... first, try to send a friendly email/letter to accounting/sales accounting/etc asking for a full accounting of your sales. Tell them you what to focus on improving your performance, whatever... but get the companies records to the best of your ability.

Next, research your states compensation laws... for the most part if you're an employee "at-will", they can change the comp plan anytime, for any reason. If you agree to the changes, then you have to live by them. However, keep in mind the timeline... most wage laws say the company has notify you in advance of the change, so sales up to the date in which you sign the new plan are subject to payment under the old plan.

Your state either treats commissions as compensation or as wages... determine if a special law is in place to protect you (like Michigan, which has a special sale representative act, which entitles you to 3 times your unpaid commissions)

HOWEVER! Your sales commissions are earned at some point in time... usually defined in your sales comp plan, as the point in which you secure a "ready, willing & able" buyer, via a signed contract with a unconditional agreement to pay (i.e. no customer acceptance period, special return clause).

Regardless, you need to write a 'demand letter' of the company, to put them on notice your owed money. Send it certified mail and keep it very friendly and upbeat, and certainly don't name your immediate managers as wrong doers, unless you planning on filing a lawsuit in the next few months. Once the demand letter is served, the company owes YOU a full accounting of your sales commissions.

Also (in addition to a lawsuit, which is completely a seperate course of action) file a formal complaint with your state's Dept of Labor... this is usually a weak and lengthly resolution, but provides some powerful protection if things go south.

If it doesn't add up... then get an attorney focused on employment law.