As a sales associate, my pay is totally dependent on my commissions. Recently the company changed its compensation structure which effectively reduces my pay big-time. Can this be considered constructive termination?
Unless you've got a contract promising you a certain commission rate for a particular period of time (or for particular accounts), your boss can probably change "prospectively" the commission structure (i.e., for future sales completed after they give you notice of the rate change). They shouldn't be able to change the rate paid on any sales that were completed prior to them notifying you of the new rate scale; this would be a breach of contract. Just because they reduce the rate doesn't mean you've been constructively discharged. This "discharge" occurs only when any reasonable person would feel "forced" out by intolerable conduct. Simply lowering the rate scale probably doesn't qualify as intolerable conduct.
(Reviewed 9-08)
For California legal issues on wrongful terminations, click here.
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