Can my employer change my incentive plan because I exceeded my yearly goal?

UPDATED: Sep 29, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 29, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can my employer change my incentive plan because I exceeded my yearly goal?

I had a set goal to attain for the year and I landed a big sale that exceeded my overall goal. After the sale was completed they came back to me and said they were adjusting my goal because this was not accounted for in the plan. Basically they reduced my commission payment by 65% of what it should have been.

Asked on July 31, 2015 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If you had a written incentive plan, they cannot change the terms of the plan during the period of time covered by that plan (though they of course can do so going forward). That's because such a written plan would most likely constitute a contract, and a written contract may onky be changed if both parties agree to the change (or if the contract itself contains provisions otherwise allowing a change). In the event of a written plan, you can likely enforce the plan in court, through a lawsuit, if necessary. But if you did not have a written plan, just an oral or verbal promise of some incentive, a court would likely find such a promise to be a "gratuitous promise" and unenforceable.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption