S
S

SaaSCloser

Account Executive

Member

Illegal?

Is it illegal in CA for an employer to retroactively apply the new commission percentage to previous sales closed before the new comp plan was delivered? Ex. Pay new commission % on Feb sales when new comp plan was delivered in March?

2

6 comments

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LordBusiness
Politicker
1
Chief Revenue Officer
It’s a grey area; but most comp plans have some sort of “we can change the plan at any time” language in them. Not that this is something that should be done; but my gut says it’s legal. 
SalesPharaoh
Big Shot
1
Senior Account Executive
Legal and commonplace especially if your collection us late because of you for example. 
CCO
Good Citizen
0
Business Director
can speak for state legality of this...but in my experience in the past when we had a comp plan for a calendar year that was not completed at the beginning of the year they would typically make the new plan retroactive to anything closed during that new year and sometimes make you agree to this/sign something.  
CadenceCombat
Tycoon
-1
Account Executive
Wow, that seems ass-backwards but not entirely surprising.
Derpfrickinvalu
Arsonist
0
Account Executive
How much of a difference in $ are we talking about with old plan v.s new? You could fight it, but might not be worth it. 
CuriousFox
WR Officer
0
🦊
What happened?

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