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I took ownership of a company and want to change job descriptions for 2 employees, and their compensation as well. I want to change their compensation from hourly to salary plus commission. Can I do that? Employee 1 is getting paid $25/ hr; employee 2 is getting paid $28/hr. I want to change it to $2000/per month plus commission. Our workers compensation was terminated so I had them sign an ICA, which one agreed to sign but the other didn’t. Am I able to change their compensation structure and terms of employment?

Asked on February 4, 2019 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

As long as you don't have a still-in-effect (unexpired) written employment contract with them for a definite or set period of time (e.g. a one-year contract), you can do this. In the absence of a contract to the contract, an employee's duties, compensation, schedule, and benefits are 100% under the sole control of the employer.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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