Legal Question in Employment Law in Oregon

My husband works for a large medical equipment distributor company in the US. He is a national sales manager for them. He makes a base salary and commission. This is at least the 2nd time that this company has come to him and told him they are changing the commission payout plan and he ends up with significantly less money (by my count at least $45,000) than they wuold have paid him. The commission is paid quarterly and both times the reduction has come after very big quarters have already been completed and put into effect agains that quarter's results. His response to me has been that they have the right to change the plan at any time. Is there anything we can/should do?


Asked on 1/24/10, 9:29 am

1 Answer from Attorneys
Daniel Meek Daniel W. Meek

It depends on whether you wants to change jobs. If he is willing to change jobs, then he should absolutely demand to be paid according to the payout plan in effect at the start of the quarter. If his contract with the company says that the company can change the commissions, even after the sales are made, that would appear to be an illusory contract. He would then sue to make the company pay him fair commissions to avoid "unjust enrichment" for the company. Such a provision may also violate labor laws. If he sues the company, they will probably fire him, so he should have another job lined up, if needed.

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Answered on 1/31/10, 8:07 pm


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