New Commission Structure at Work

I would like to find out more about the major change our company has made, but I can't seem to find out where to begin. I have worked here for 14 years and am on a commission only structure. We have always been paid on the invoices that we were responsible for generating income for the company at a set percentage. The company would take out 37% for operating expenses, and the rest of the money would be distributed to whomever worked on the account at their own particular commission percentage.

Due to the President of the company not keeping a watch on expenses, thinking he had more than he had to spend (all this came out after the comptroller retired), and the comptroller not paying state taxes for 5 years, our company is in major financial problems.

So, last month they decided that they were going to distribute commissions a new way. All expenses will be paid first and then whatever (if anything) is left over will be distributed. We were told that we had been on a "gross based commission distribution" and now we're on a "net based distribution." I would like to do some research on this to see if its even legal, but when I Google it, I come up with nothing that seems remotely related.

Is there anyone here who can help me shed some light on this new way we're being paid? I would really appreciate it.

pins2006, do you have a written contract? If you do, you'll have a better chance of going back to the previous way of being paid. I think you had better contact your lawyer soon whether you have a written contract or a verbal one. Good luck. Dotti

That sucks! Why should the employees be on the hook for the comptroller's mis-management of funds? The comptroller is lucky not to be in jail for tax evasion.

Anyway, ditto on what Dotti said. And, a bit of advice from my husband: start looking for another job, *now*. He figures the company is either going to go under or it will get bought out by a competitor (he's had quite a bit of experience in this area, unfortunately!) Either way, you'll end up working for someone else. You should be the one who gets to decide who.

Rhonda

Thanks for the great advice. I will be talking to a lawyer this weekend. I'm waiting on this paycheck so I'll have documentation on what is going on. This paycheck the company decided that they needed 59% of what came in to make expenses! Some people are getting only $450 before taxes for working two full weeks.

If I change jobs it will most likely be that I'll have to start my own business. I'm 54 and those are the people who are taking early retirement at most companies.

I'll keep you posted on any developments.

Pins....best of luck...!
carole in atlanta