Can my employer change my commission plan or withhold commissions?

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Can my employer change my commission plan or withhold commissions?

Your employer can come up with a new or modified commission plan. In some cases, your continued employment may even depend on whether you agree to the terms of the new agreement. However, employers are not allowed to change a commission plan to avoid paying commissions that an employee has already earned under an existing agreement.

Under California law, once commissions have been earned based on the terms of the original commission plan, they must be paid in full. The commission plan must clearly explain how your commissions will be calculated and paid.

The document should also include details of any amounts the employer plans to deduct from earned commissions. State law requires the employer to provide the employee with a copy of the commission plan. The employee must then sign off on it.

It is unlawful for employers to withhold commissions. Once commissions are earned, they must be paid at least twice a month, with limited exceptions. When an employee is terminated all earned and unpaid wages, including commissions, are payable immediately.

If your employer has violated the terms of your commission plan or willfully withheld your commissions, you should speak to an experienced employment law attorney. McCormack Law Firm can help you understand your legal options.

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