If I signed an offer letter less than a year ago but my company has changed the pay without notice, do I have any rights to challenge this?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I signed an offer letter less than a year ago but my company has changed the pay without notice, do I have any rights to challenge this?
I was to be paid on everything sold in my terrritory and they signed another
company to sell into the area. They told me that I do not get any compensation on what they have sold.
Asked on February 18, 2017 under Employment Labor Law, Wisconsin
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Typically, an offer letter does not constitute a legally binding contract. For a contract all material terms of employment would have had to be set out and mutually agreed to (i.e. rate of pay guaranteed and for a specific duration, etc.). Otherwise, an offer letter is just that, an offer to work on terms but terms that can later be changed by the employer. The fact is that most employment arrangments are "at will". This means that a company can set the conditions of work much as it sees fit (absent some form of actionable discrimination). Accordingly, unless this pay change violates the terms of a union agreement or employment contract, it is legal.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
An offer letter does not necessarily form an enforceable contract--in fact, generally it does not. To be a contract for employment purposes, it needs to have a set duration--for example, it needs to be a one year, two year, etc. contract, which locks in the terms for that time period. If there is no time period set, then the employer may change its terms at will (i.e. with a duration during which the terms may not be changed, they may be changed anytime), so they could give your territory to another person or company.
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 AttorneyPages.com 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.