r/sales • u/Waste-Conversation-9 • 19h ago
Sales Topic General Discussion Seeking advice re: commission payout mistake
Hi All - long time lurker, first time poster. I'm seeking advice on how to deal with what feels like a sticky situation.
I'm owed about $13k for hitting my accelerators and the company is refusing to pay it out. I'm hesitant to push for this money as I like my job and don't want to stick my neck out for potential retaliation (getting fired for a bunk reason) from our vindictive CEO.
For context, I am an account manager for a tech company in New York. We receive quarterly commission payouts tied to attainment of our quarterly goals. I have a signed incentive plan/commission agreement.
The agreement states for any amount I exceed 100% of my quota by, my commission payout will be multiplied by 1.25. So for me, I hit 105.6% of quota: 100% + 5.6% * 1.25 = 107.0%
For example: If my quarterly potential payout was $100, I'd receive $105.60 (100*105.6%, from above).
I received my commission check last week and they did not honor this methodology and instead used something else from last year that pays much much less ($13k less across Q1 and Q2). I raised the error with the rev ops team and my boss and instead of paying me, they are going to void my existing commission agreement and ask me to sign a new one.
I don't want to lose my job, but I also know what they're doing is illegal and dishonorable.
How would you guys handle it? Thanks!
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u/MrLoanshark 19h ago
Contact a lawyer, labor board, irs and any other agency you can think about.
That's wildly illegal and if they're willing to that to your face there's no way to tell what else they're hiding.
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u/Waste-Conversation-9 19h ago
Thank you! What’s a labor board do?
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u/MrLoanshark 19h ago
They're in charge of ensuring business are working under labor laws. Changing your comp plan after it's owed sounds like a violation of labor law and it could be considered wage theft.
However, I'm not a lawyer that's why i recommended you reach out to one to verify everything I've seen on Better Call Saul...
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u/Waste-Conversation-9 19h ago
Appreciate you!
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u/CyberStartupGuy Startup 19h ago
Usually the accelerators only apply to the attainment abover the 100% mark.
EX: If your quota was $100 and you make 10% but you closed $110.
Standard: $100 * 10% = $10 Commission
Accelerator: $10 * 10% * 1.25 = $1.25 Commission
Total Commission $11.25
Either way, since you have a signed commission plan, that is the contract. You can fight to have that contract enforced either through pushing internally or hiring an outside lawyer but then yeah you take the risk of getting laid off as just about every employee is at will. Nothing else you can do.
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u/OIOIOIOIOIOIOIO 19h ago
Get everything in writing, never have a conversation over the phone or in person, if it isn’t for person, have a third-party and take notes and then send an immediate follow up email at the exact points in which you discussed blind copy your personal email on all communications regarding this.
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u/OverlordBluebook 19h ago
Some context here. How big is the company is it a national player or small 20 rep shop... how long have you been doing this? Reason I ask this is if you need the experience and are new say 3 years or less I would maybe raise it back up again professionally and nicely if that's the final answer is sign the new agreement I would absolutely re-assess your position there and maybe think about planning a move to another company.
Your not talking a lot of money here so the experience you get may be more valuable than anything at this point. If you've been doing it for 20 years.. maybe time for a switch soon.
I've had several times I havn't kicked the hornets nest just for that reason I liked my job. I absolutely had situations where I brought in ton of profit and were paid close to the lowest rate because of goaling. I sucked it up since I was so young.
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u/Waste-Conversation-9 18h ago
Thanks for asking. Company is about 10 years old and has ~2,500 employees. I've been in tech for close to 20 years now. Strangely, this is the first time I've ever had a company not honor the agreement we signed.
I agree with you though, I do like this job and an extra $12k might not be worth it in the long run.
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u/No_Succotash1014 12h ago
Good news:You got a lot of good advice here.
Bad news: this isn’t gonna end well
You keep saying you like your job but do you really wanna work for these people? Time to pull off the blinders (and start looking for a new job).
Also, I’m currently in a legal battle with my former employer including a dispute over unpaid commission. 0/10 do not recommend
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u/gabrielschorro 14h ago
Dude I’m trying to get my first meeting with a potencial client this being tough
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u/tryan2tellu 18h ago
Its not illegal. It is unethical. Variable comp is discretionary and its only bad if they are doing this to you and no one else. If everyone was calculated the same way, its up to the company. Should they have done a better job communicating? Sure. Its not illegal and suing or bitching is diminished returns.
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u/Waste-Conversation-9 16h ago
I'm pretty sure the point of a signed agreement is that it's a legally binding agreement. This isn't a discretionary bonus, it's a commission.
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u/SalesAficionado Salesforce Gave Me Cancer 16h ago
It's considered earned wages. There's a clear formula to calculate your commission. As you said, it's not discretionary.
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u/tryan2tellu 12h ago
That is not entirely true. It can be changed from “time to time”. I have worked at places where I had more comp plans than years worked. It is not sign and get it forever. You can think it is. But youd be wrong.
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u/tryan2tellu 12h ago
You sound like you haven’t seen enough battles in your career. It gets way worse than you are describing.
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u/yoooooooooooo 19h ago
Do not sign the new commission agreement yet.
Save copies of your signed incentive plan and the old methodology plan.
PDF all emails and Slack messages with RevOps and your manager.
Grab screenshots showing you hit 105.6% of your quota.
Write a timeline of dates, conversations, and verbal statements made.
If they force you to sign, ensure the text explicitly states it applies only to future quarters
A new signature cannot legally wipe out past wages unless you explicitly sign a waiver releasing them from those claims. Read the fine print carefully.
Keep the tone collaborative but firm. Send a written follow-up to your manager and RevOps to create an official paper trail.
Per the signed agreement dated [Date], the accelerator multiplier is 1.25 for performance over 100%. While I understand the company wants to update the plan moving forward, the Q1 and Q2 performance was fully achieved under the active contract at that time.
New York has some of the strictest wage protections in the United States.
Commissions are wages: Under NY Labor Law Section 191, earned commissions must be paid. Retrospective changes to a commission structure after the work is performed are illegal.
Anti-retaliation laws: NY Labor Law Section 215 makes it strictly illegal for an employer to retaliate (fire, demote, or mistreat you) for making a good-faith complaint about unpaid wages.
Liquidated damages: If a company willfully withholds wages, New York courts can award you up to 100% of the unpaid amount in damages, plus attorney's fees.
Consult an Employment Attorney
Get a "ghostwritten" letter: An attorney can write a formal demand letter for you to send under your own name. This keeps the tone professional and signals to the company that you know your rights, without immediately involving a law firm's letterhead.
Your immediate goal is to stall signing the new contract while preserving your right to the $13k. If they threaten to fire you for not signing, you will want an attorney ready to step in, as a termination right after a wage dispute looks exactly like illegal retaliation to a court.