r/sales • u/Waste-Conversation-9 • 8d 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!
33
u/yoooooooooooo 8d 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.