Wages are supposed to be simple right? Well in some cases, like hourly wages they are. Say if you get paid $25 an hour then you multiply that by the amount of hours you work, and multiply again by the weeks in a month and boom you have your wages for the month. The complications come in when you have to meet certain performance targets to earn your wages.
There are multiple issues that can be the cause of a wage dispute. The following are some examples:
The first step to take when attempting to resolve wage issues is to look closely at the contract. Within the state of California, an employee’s commission contract is based on a set of rules, regulations, and policies that are set out for the employee to follow and targets to hit in order to receive a commission. This contract also includes the bonuses and commissions that can be expected for hitting these targets. This contract is enforceable even if there are at-will termination of contracts available.
So simply for a commission based contract, there does not need to be a signed piece of paper for a contract to exist. A unilateral contract is one in which a “unilateral” offer to pay for performance is communicated by the employer. This type of contract is accepted in California.
This means that once the tasks required by the company to earn commission are completed the employees right to a commission is immediate. This can prohibit the employer from changing terms of commission for the rest of the year.
Because the law states that the employer can terminate a contract at will, then most employers believe that the contract for compensation can also be changed at will. Employers sometimes also believe that commission can only be earned when handed out by the employer. This is untrue for past sales.
It is highly frustrating when wages and commissions are being withheld by an employer, and it can also lead to financial hardship. When this happens a Los Angeles wage and hour issue lawyer is here to help. Call (818)-305-6457 for assistance from a Los Angeles wage and hour issue lawyer at The Kaufman Law Firm.