If I have a commissioned sales position with a dealership, can my employer condition my percentage in accordance with all our surveys or just mine?

I work in the service department and my pay percentage changes depending on the customer surveys received. I am grouped with all the surveys for the dealership so if another adviser gets a bad survey, it effects me too.

Asked on September 1, 2015 under Employment Labor Law, Alabama


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, this is legal unless you have a written employment contract defining or specifying your percentage. Without a contract, your employer is free to change your percentage at will, and may base it on any factors it chooses, including the performance of your group. In a related context, it is common, for example, in many industries to base bonuses on group, department, or company performance, not individual performance.

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