Legal Question in Employment Law in California

Sales Commission Wages Reduced

I sell Computer Graphic hardware maintenance contracts in California. My company was acquired--name removed--a New Jersey based company. I get paid a percentage of each contract sold. If it's annual I get 1 yr. commission, if monthly I get paid an amount each month. April 1, 2007 started the new company's fiscal year. Their comp plan reads the same as my old one. However, I see they are subtracting the cost of spare parts used in the contracts I sold against my sales each month. There are parts that can exceed the cost of an annual contract. Can they do this? They are dumping an unlimited liability on me for their normal costs of doing.

Please advise on my options in this matter.

Thank you,


Asked on 5/05/07, 1:43 am

3 Answers from Attorneys

Alden Knisbacher knisbacher law offices

Re: Sales Commission Wages Reduced

It sounds like that policy could well violate the California Labor Code -- sections 221-223. For a discussion about the code sections, and California law on the point, paste the link below into your address bar -- it's a case that found certain employer deductions to be illegal

http://online.ceb.com/calcases/CA4/34CA4t1109.htm

feel free to contact me on my private email to discuss further -- I take cases throughout the state.

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Answered on 5/05/07, 6:43 pm
Terry A. Nelson Nelson & Lawless

Re: Sales Commission Wages Reduced

Can they? Yes, they just did, didn't they?

Should they? No.

Is there anything you can do other than quit? Yes, you could file a Labor Commissioner claim for the unpaid compensation lost under the spares issue. That will force a legal decision.

You can also hire counsel to negotiate restoration of your proper compensation , past in future. The goal is to avoid them firing you, which would then be grounds for wrongful termination claims. If you need counsel, feel free to contact me as you are close, and this is a speciality of my practice.

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Answered on 5/07/07, 2:08 pm
Bryan Becker Stutz Artiano Shinoff & Holtz

Re: Sales Commission Wages Reduced

This is most likely subject entirely to the written contract you have with the former/current employer. Reviewing the agreement would be necessary before any advice could be given. However, if the contract or the course of dealing provides legal justification to pursue your claim -entering into a productive dialogue with this company would be advisable given the on-going business relationship.

I would be willing to discuss some of the issues concerning your case to see how I may be of assistance.

I offer prospective clients an initial consultation of 30 minutes for free.

I look forward to speaking with you.

Yours truly,

Bryan

Bryan C. Becker, Esq.

Principal

Law Office of Bryan C. Becker

The Koll Center

501 W. Broadway, Suite 800

San Diego, CA 92101

Toll Free: 877*201*8728

Direct: 619*400*4929

Fax: 619*400*4810

Member, National Association of Consumer Advocates

www.naca.net

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Answered on 5/05/07, 1:57 pm


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