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? asked in Business & FinanceCorporations · 1 decade ago

My husbands company is changing payroll can they do that?

At the beginning of the year my husband company changed his salary from 50,000 a year to 25,000 salary and a percentage of all jobs brought in, and of all the jobs brought in, if you have a friendship or relationship with the agent you get an extra percentage on that job on top of the first percentage. So for January, lets say he brought in 40,000 in sales and he made a 85% margin on them, he would get 1,700 for the first percentage (5) and he would get 1,020 (3) on the second because he was through a agent he had a relationship. Now this wouldn't be paid until his last paycheck in Feb. See how this is working? So now we are expecting to get paid this in Feb. Yesterday, his his boss gets all the paperwork on how much everyone is gonna get paid, and decides to change it and not give everyone the second percentage on the relationship and date it back to January 1st, so he doesn't have to pay it. Can he do this? I know it is ethically wrong and pretty crappy (which is a nice word!!)

2 Answers

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  • Babe
    Lv 7
    1 decade ago
    Favorite Answer

    Unfortunately, unless he has union representation or a fully enforceable contract, the company can do just about anything management wants.

    He WAS earning $4167 gross each month. Now he earns $2,083 gross PLUS INCENTIVES. So the more he hustles and closes sales the more he will gross. If he was paid both selling incentives his gross would be $4803 before taxes and I suspect the boss was really trying to cut back on wages and hadn't thought the whole thing through.

    If all the sales people are being treated this way, there is no prejudicial treatment, and the company is probably in the clear. If only one or two salesmen are being treated this way and the rest are being paid according to the 1/1/11 change, then those salesmen (including your husband) would have a valid case to go to the State or Federal Labor Board.

    Your husband should 1) talk with the boss and see what's what. Can he get a partial advance on the $1700 by February 10 so you can make your mortgage payment?

    If there is no change, he should 2) find an attorney specializing in labor law for a free half-hour consultation. He would need to bring any paperwork, (contracts, emails, etc) documenting the original rate of pay, the proposed changes, what he SHOULD be paid under the 1/1/ calculations, and what the company says they want to pay now.

    And he needs to start looking for another job. If the company wins, you and your husband will cop an attitude and be very unhappy. If he wins his argument and the company has to pony up the extra cash, your husband could find his quota increased or find himself holding a termination check for some lame excuse. Companies can do that too.

    Good luck.

    Source(s): California labor law and experience
  • ?
    Lv 4
    5 years ago

    If you learn one of the crucial proper to grasp legislation, the Company Policy needs to be published and in a conspicuous location for all to look. They can difference it, however they have got to publish the difference for all to look. Having a coverage that's key is the equal as no coverage in any respect. Have your husband talk to a member of HR and request a listening to with them to solve pay difficulty. They must provide an explanation for it thoroughly to him. If they do not want, have him dossier a criticism with the State EEOC. They are not able to deal with him otherwise from different staff.

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