What Happens to Earned Commissions Under the Wage Act After a Commission Policy Change?
Legal Implications of a Change in Commission Policy
Employers do change their commission policies from time to time, and generally they have a right to do so. They cannot, however, cause you to forfeit any compensation you have already earned.
This applies to both wages (or salary) and commission pay. It is of special concern with respect to commissions, because there is often a lag time between the services you provide and when the commission becomes due and payable under your employer's commission policy.
For example, if your commissions are paid quarterly, and your employer revises the commission policy right before the end of a quarter, there very likely will be a question about what was "earned" before the change, and therefore due to you.
This can get a little complicated, depending on how the original commission policy was structured. If you are notified of a change in commission policies that will result in you getting paid less than you expected in commissions, it is a good idea to consult with an employment lawyer so you can understand your rights and your options.
Learn more here about commission pay under the Massachusetts Wage Act.
Need Help With a Commission Pay Issue?