Can an employer change the terms of an employment agreement after it has gone into effect?
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Can an employer change the terms of an employment agreement after it has gone into effect?
I signed on with a company 10 months ago to sell their products. The agreement was that I would make 30% commission in sales and would make 1 to 3% in sales off of each person I got to join under me. When I signed up there was no minimum in sales expected and my account would stay active as long as I logged into my back office. Well, they just posted a notice out that they are now requiring that all reps sell a minimum of $150 every 90 days, as well as log in once every 30 days. Failure to do so would close your account and any commissions you had from your down-line would be lost. Is this legal? Can they change the requirements on reps who signed up before the new terms went into effect?
Asked on August 6, 2014 under Business Law, Michigan
Answers:
Shawn Jackson / The Jackson Law Firm, P.C.
Answered 9 years ago | Contributor
First, I would need to read the signed written agreement to understand the full impact of the contract. Second, on the assumption that there are no restrictions in the document, we would need to look at whether there was a simple scrivenor's error...or some level of "impossibility" to the terms of the agreement. In either case, this situation is ideal for mediation since there appears to be a "mis-communication" that needs to be resolved. Feel free to call an attorney of your choice for that initial free 30 minute telephone or email consultation.
Shawn Jackson California Business Development Attorney
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