Is this legal? My spouses company just decided to change their comp structure for account managers. It was base + comm, now it’s commission only but nothing changed, OT commission is the same, didn’t get more points, just took away the base pay and said work harder basically. So now they have to worker harder to get $50k they were already making. (Not a decision based on employee performance, they’ve been crushing it. I think the company is just trying to save money they overspent else where)

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Federal law requires one pay period notice for pay changes.

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Interesting, thank you! Also, how does 7 days help anyone lol 😆

Hmm, did your contract say that the comp structure is subject to change?

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I’ll have to ask them to check it. I’m thinking it’s probably worded as such but that just seems like such a significant change.

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There may be some legal implications if your spouse's company has changed its compensation structure for account managers without any justification but I doubt it. It might depend on the state.

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No, sales comp structure changes every year at some companies as employees and customer both outgrown their segment and territory assignments. Although moving from partial salary to full commission is pretty drastic.

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If you’re in the US, probably. It doesn’t seem like a smart choice if they want to retain account managers, but the limited info here doesn’t suggest it’s illegal.

Agreed!

Get a lawyer, I'd personally walk over such a decision.

Unfortunately they love their team and are not ready to make a move. I’m just in total disbelief over the companies choice and actions.

No legal implications. Need to give one pay period notice.

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