San Jose, CA asked in Business Law, Contracts and Employment Law for California

Q: can a company change its fiscal year by 1 month and adjust sales commish to 13 months instead of 12. contract is annual

commission paid month to month based on the prev months performance. given an ote of 55k in commission on an annual term or 2 6 month terms. comoany is on calendar fiascal year. We were told in october that we were adj our fiscal by one month so now it will start in feb. then they adjusted the entire commissions for 2nd half to include the additional new month. so basically my commission ote is now over 13 months instead of 12. not only that, they applied the new percentage to commissions paid in july, aug and september although we werent told any of this until the end of september. they also changed the quota level in september and avgeraged the percentage over 7 months instead of doing one percentage for months july aug and sept and another for last 3 months. is this a fair practice? It feels like my commission salary just got spread over 13 months instead of 12. i signed an annual ote agreement. Annual means 12 months to me.

1 Lawyer Answer
Ali Shahrestani,
Ali Shahrestani,
Answered
  • New York, NY
  • Licensed in California

A: This may qualify as a breach of your employment agreement.

See: http://www.aeesq.com/business-law/employment-lawyer/

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