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I took ownership of a company and want to change job descriptions for 2 employees, and their compensation as well. I want to change their compensation from hourly to salary plus commission. Can I do that? Employee 1 is getting paid $25/ hr; employee 2 is getting paid $28/hr. I want to change it to $2000/per month plus commission. Our workers compensation was terminated so I had them sign an ICA, which one agreed to sign but the other didn’t. Am I able to change their compensation structure and terms of employment?
Asked on February 4, 2019 under Employment Labor Law, California
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 3 years ago | Contributor
As long as you don't have a still-in-effect (unexpired) written employment contract with them for a definite or set period of time (e.g. a one-year contract), you can do this. In the absence of a contract to the contract, an employee's duties, compensation, schedule, and benefits are 100% under the sole control of the employer.
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