Legal Question in Business Law in California

Sales Quota increase (is there a limit?)

Hello,

Is there a limit on the amount a Company can legaly increase a statutory employees sales quota? I am paid

by straight commission. Commission is based entirely on sales. Bonuses are paid based on whether or not we make

our quota, go over our quota, etc.

My quota was increased over 150% above last years quota.

I do not know of any other employee whose increase was even close to 50%,let alone 150%! Last year I was salesperson of the year for the entire company, and so far this year I have lost over $30,000 in commission due to the unattainable quota.

Any advice is greatly appreciated. Thank you


Asked on 5/01/02, 2:24 pm

3 Answers from Attorneys

Ken Koenen Koenen & Tokunaga, P.C.

Re: Sales Quota increase (is there a limit?)

No, there is not a limit.

However, they cannot discriminate against you, either, especially if you are female, a minority, or over 40. If they have not raised other quotas by the same amount, it could be a sign that they are trying to make you fail.

Now is the time to address those issues.

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Answered on 5/01/02, 2:39 pm
Martin Zurada Law Office of Martin Zurada

Re: Sales Quota increase (is there a limit?)

No limit that I am aware of, but if you are treated differently because of your sex, race, ethnic background, or age it could be grounds for a discrimination claim against your company.

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Answered on 5/01/02, 3:09 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Sales Quota increase (is there a limit?)

Your commission arrangement with the company amounts to a contract, whether it is formal or partially or completely based on oral understandings.

All contracts are deemed to contain an implied covenant of good faith and fair dealing. Although it is more difficult to prove and enforce an implied covenant than a contract term set forth expressly and in writing, you can still sue -- and perhaps win -- based on unfair treatment, whether such treatment can also be labeled as unlawful discrimination or not. If you can show discrimination, your case is stronger, but that's not essential.

In addition to a breach of contract claim, you can probably assert a claim based upon fraud and maybe get punitive damages.

If the amount of lost commissions warrants, and it seems to, it could be worth your while to present the facts to an aggressive attorney near where you live or work for an initial consultation leading up to a potential a breach of contract and fraud action against the employer.

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Answered on 5/01/02, 4:16 pm


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