Is it legal for a company to change my commission on my last day without notice?

Question

I am leaving my company today, and I've just received an email stating that my long-standing 3% commission is being changed. The email demands I sign the new agreement, or I receive no commission at all. There was no prior notice or explanation given for this change. I also have no written agreement for the original commission rate. Is it legal for my employer to enforce this commission change on my last day?

James L. Arrasmith · Answer

In general, employers can change compensation structures like commission rates, but they are expected to provide notice and, ideally, an explanation of such changes, especially if it impacts your earnings. Since you were informed of the change on your last day without prior notice, this could raise questions about fairness and transparency. If your original commission was agreed upon verbally or by practice, the employer may still have the right to modify it, but they should have communicated this well in advance. 
 
The fact that you were given an ultimatum to sign the new agreement to receive your commission could be a point of contention. While employers can make changes, they are generally not allowed to change terms without clear communication and adequate notice. You may have a claim to the commission earned based on the original agreement, particularly if the change was sudden and without explanation. 
 
You may want to address this with your employer, requesting clarity and documentation regarding your commission structure. If this issue is not resolved to your satisfaction, you might want to seek advice on how to proceed, including considering legal action for any unpaid commissions owed. Keep any relevant communications as evidence in case you need to escalate the matter.

Q: Is it legal for a company to change my commission on my last day without notice?