Can an employer retroactively change a commission structure resulting in a 50 reduction of expected comission checks
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Can an employer retroactively change a commission structure resulting in a 50 reduction of expected comission checks
My employer retroactively changed a commission structure negatively affecting up
coming commission checks, is this legal in the state of Illinois?
Asked on March 9, 2016 under Employment Labor Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
In a word, no: retroactively changing the structure is breach of contract--the agreement, whether written or even oral/unwritten, pursuant to which employees sold products/services in exchange for an agreed-up commission. The commission structure can be freely changed prospectively, or on a forward-looking basis, unless there is a written agreement locking it in, but it cannot be retroactively changed for work already done. The employers would sue for the unpaid commissions with a reasonable chance of success, if the change was retroactive.
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