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Wage Act Violation: Retroactive Change in Commission Policy

Wage Act Violation: Retroactive Change in Commissions
George worked as a sales representative for a national telecommunications company.  He and his team were on a commission plan that paid based on quarterly earnings, and these commission payments were a substantial portion of their compensation.

Two months into a quarter, the company changed the caps and quotas on the commission plan, resulting in an almost six figure decline in his compensation for that quarter, most of it on sales already made when the change was announced.  

Because the amount was so large, and because of how heavily George and his colleagues relied on commissions as part of their total compensation package, this was a significant financial hit.

Wage Act Solution

We filed a complaint on behalf of George and one of his colleagues, alleging violation of the Wage Act by failure to pay for commissions already earned when the change in policy took effect.  After some discovery, the parties went to mediation and were able to resolve the case to George and his colleague's satisfaction.

Postscript

If you rely on commissions as a significant part of your compensation, you should know that your employer can only change your commission going forward.  They cannot change it in a way that takes away commissions you have already earned, because that is a violation of the Wage Act.

Need Help With a Claim for Unpaid Wages?

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We have years of experience helping people with wage and hour issues, and we would be happy to help. You can use the button below to schedule a call back from a member of our team, or give us a call at  781-784-2322.
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  • Home
  • Employment Law
    • Guide To Employment Law Content
    • Employment Contracts in Massachusetts
    • Discrimination in the Workplace
    • Employment Termination >
      • Massachusetts Paid Family Leave
      • Severance Pay
      • Unemployment in Massachusetts
    • Sexual Harassment at Work >
      • Sexual Harassment in a Small Business
      • Sexual Harassment and Non Disclosure Agreements
      • Sexual Harassment and Remote Work
    • Wage and Hour Laws >
      • Overtime Law >
        • Overtime Exemptions
        • Employee Travel Time
        • Federal or State Overtime Law
      • Massachusetts Wage Act >
        • Payment of Commissions
        • Wage Deductions
        • Late Payment of Wages
        • Paid Time Off
    • Independent Contractor Law
    • Non Compete Agreements >
      • Are non competes enforceable
      • Massachusetts Non Compete Act
      • Pre 2018 Massachusetts Non Competes
  • Estate Planning
    • Guide To Estate Planning Content
    • Legacy Protection
    • Why You Need an Estate Plan
    • Why You Don't Have an Estate Plan
    • Estate Planning Documents >
      • Children with Special Needs
    • Planning for Assisted Living
    • Probate Process
  • Business Law
    • Guide To Business Law Content
    • Small Business Law
    • Business Contract Basics
    • Civil Suit Defense
    • Legal Issues for Start Ups
    • Trademark Basics
    • How to Incorporate
    • Sale of Business
  • About
    • Reviews
    • Slnlaw Offices
    • slnlaw core values
    • Publications and Interviews
    • New Client Intake and Consultation
    • Contact
  • Attorneys
    • Emily Smith-Lee >
      • 2018 Lawyer of the Year
    • Jenna Ordway
    • Rebecca Rogers
    • Sharleen Tinnin
    • Elijah Bresley
  • Legal FAQs
    • Estate Planning FAQs
    • Probate FAQs
    • Small Business FAQs
    • Wage Act FAQs
    • Commission Pay FAQs
    • Overtime FAQs
    • Independent Contractor FAQs
    • Non Compete FAQs
    • Employment Discrimination FAQs
    • Employment Termination FAQs
    • Massachusettts Unemployment FAQs
    • Severance Package FAQs
    • Medical Leave FAQs
    • Sexual Harassment FAQs
    • Employer FAQs
    • Civil Lawsuit FAQs
  • Blog