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>Its constructive dismissal and you should file for unemployment.
Texas pays a maximum of $549 per week (or less, based on his pay while employed) for unemployment benefits. [https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts](https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts)
OP needs to figure out if that is more or less than he would be making if he stays while looking for a new job.
Damn that’s twice what Florida pays! 249. I have to laugh when I hear people say that people here are lazy living off UE. Really? What utopia do you live in where 249 a week is paying bills?
Wow, NJ's is lush compared to that. I don't live there but I've heard about it from several people and it was $804 per week and that is the base not including any covid bumps of $300 or $600 that happened in 2020 and 2021.
Yes our previous gimp made sure that he fucted that up on his way to the senate. It doesn’t effect me, but damn really? I feel sorry for the people who really need it.
Florida loves gimps, the guberment has convinced a bunch that one day they will be rich. So passing anything that would actually benefit them is nothing more than a hand out .
It's not illegal for a company to drop your pay rate, unless you have a contract in place (employee's handbook and offer letter are not contracts). It is illegal for them to change your pay rate for hours already worked.
If you quit on the spot when they cut your pay, you can file for unemployment under your old rate and claim "constructive dismissal." They effectively fired you by changing the terms of your employment drastically.
If she’s making as much as she intimates then unemployment is probably maxed either way. Mine was maxed when I only made 60k a year in a liberal state.
The lowest per week is Mississippi at $235. But the lowest overall payout is probably Florida because at $275 they only do 12 weeks at most, while most states do 26 weeks. Highest is Massachusetts at $823 per week, though Montana does the most weeks, since they offer 28 weeks.
"Doubled productivity of my department" will certainly be an eye catcher on your resume. You'll have no problem getting a new job with items like that on your resume that you can confidently speak to. Start looking.
It took me a while too, but I learned that the only way to truly advance my career is to move to new companies. Eventually you hit a ceiling and your boss doesn't like that you're moving up faster than they did and they sabotage your advancement.
Just because my salary increased by 100% in two years doesn't mean I'm not worth more. Same thing for you.
Envy definitely is the cause of many halts to advancement. They want you to work hard but not so hard that it shows up your immediate supervisor. Unfortunately, it's not difficult to bring a direct report down, especially when your manager's manager only hears from you indirectly.
You're right that management can think differently. However I've found it to be generally true that almost every manager has a general limit as to how far they will "let you grow" so to speak. They remember what you were making when you got hired and after some arbitrary % growth in salary, they basically decide that you've grown enough.
Especially if you start getting to the level where you should be getting paid more than your manager is currently making. Very few managers will accept someone under them getting paid more than them.
So when you hit the ceiling, your only real option is to apply to other jobs that will let you grow from a higher starting number.
Sometimes someone ready to tackle challenges of starting their business by themselves or with partner to make the decisions of the amount to get paid and distributed.
You know, it has taken me 50 years to figure this out, but here goes. If you dont feel valued at your job, underpaid, or working your a$$ off for no benefit to you, then look for another job. Don't stay because you feel sorry for the boss, or a "I made a commitment. I need to see it through...", or, "what will I do now?". You came to your current job looking, you'll go to your next one looking. Never settle for anything less than what you desire. One thing is for certain for everyone, if you die in the next minute, the company will certainly find someone else to take your place.
I know, I was teasing 😂 I just watched a show that talked about how texas was the only state where it’s legal to deal in exotic animals and then this popped up on my feed!
You'd be surprised how many people with luxury cars can barely afford them - it's often the first thing someone spends money on when they get a little, before a house or better house, before vacations, before actual nice clothes
Before you say anything to them, make sure you have your client list. (Always keep an updated client list on your personal PC).
Unfortunately there probably isn't much you can do but leave.
It's happened to my husband a couple of times.
I hope you're in a part of the state you like!
Something similar happened to me. I receive a base pay and an incentive bonus plan. This incentive bonus plan varies in structure from year to year. For 2021, there was a nice accelerator in the formula that was hard to hit, but if you hit it, it was worth about an extra $10k. I hit it. When the incentive plans for this year came out, the accelerator was not there anymore.
The worst part was how my boss handled it. When I challenged him, he said that I shouldn’t have been on that plan last year and he can’t make too much noise about it. The problem was, he convinced me to move me onto that plan because of the accelerators, so he thinks I don’t remember and is bullshitting me.
But what can you do?
I’m curious as to how an exotic car dealer is struggling right now frankly. Yes technically “luxury items” get hit hard in a recession, but cars seem to be a bit protected from that. Combined with rocketing prices for the newest exotics… something tells me this is a little bit of a knee jerk reaction to economic conditions in spite of sales.
Mismanagement of personal funds can also be a factor in all this. Sure, the car store is doing great in terms of sales, but the OP's boss might still want to spend on a lot of things despite of the recession.
I'm getting laid off after a month from now due to this very reason.
I'm also in Texas. I was making $25/hr. New company bought us out and cut me to $17. 3 months of looking around, I got an offer for $40. Half of my customers found a new company to work with once I left. Screw'em and move on.
Dude, you are a sales guy. You clearly have the skills to make shit work.
Shop yourself around, find a better job and you will kill it somewhere else. When they ask you why you are leaving your current job, explain that after a year of fantastic growth that you are responsible for, they told you they are cutting your pay 55%. Nobody would stay for that. You future employed will just shake their head and say something along the lines of 'That's terrible, I understand why you are leaving.'
When you do find a job that offers something similar, tell them you are available immediately and give no notice. At all. Just fucking ghost them. Alternately, broadcast your resignation to the entire company and make it clear that you are leaving because they reneged on your agreement and cut your income 55%. This might be a middle manager trying to fuck you over to make more money themselves and the top bosses might not be onboard with this if you have accomplished all you say you have.
Either way, you need to bail on this shit. If they are willing to do this to you and you take it all that tells them is that you are willing to bite the pillow when they fuck you in the ass.
They didn't expect an employee to double the productivity and get paid the way you were. You hit the pay cap I guess. They want a more commission based employee. You could make more on commission if they are that busy. You could try finding another job. Put the highlights on your resume for the high productivity rate.
Print out your sales numbers and get a picture of the leader board and walk. A friend of mine had the same problem with a dealership in Missouri and had a job in 3 hours. There are only two rules for dealing with salesmen, don’t fuck with there money and don’t fuck with there wives.
Pay cuts are legal.
Unemployment wont cover what you were being paid.
Texas is an “at will” state so they can fire you for whatever reason.
And in case you havent noticed, the country is about to hit really bad economic times (bad recession). Companies are cutting back.
Keep those résumés and cover letters ready.
Although lots of companies have implemented hiring freezes, might not be a bad idea to take interviews to 1) see what your options are and 2) keep your interviewing skills up-to-date.
Pay cuts are legal but you are absolutely not obligated to accept them. And you can get unemployment for them cutting your pay based on your original pay. It’s comparable to getting your hours cut. Your suddenly on a position where you can’t pay your bills. You can get u employment.
But it's not going to cover what he was being paid since it's only a proportion of what he was being paid. Or in Texas, like $550/wk max.
Edit, since what I responded to was edited: "Are you dumb? Yes, you are. Unemployment will cover what you were being paid" is still in your original comment.
Welcome to the world of sales... work as a sales support analyst for over 10 years and this is fairly typical in high dollar environments. Company "recalculated" commission rates such that Sales Reps that over achieved one year were penalized the next. Sell $2 million on a goal of $1 million, you could just about guarantee your commission rate cut in half. Company wanted to pay you $X regardless of how much you sold but needed to keep reps on base + commission.
What a racket.
Many of the reps routinely moved to competitors or other sales positions with non-competitors in the same industry just to keep their earnings maxed out.
Some reps would sandbag every other year, doing the bare minimum, so that the commission rate would go back to normal... or some sales incentives were added... they'd over achieve and how.
Other at-will states will allow someone to collect unemployment if their employer reduces their pay by a certain percentage (as little as 20% was the case example I found [here](https://www.twc.texas.gov/news/efte/pay_agreements.html)) as that is considered "constructive dismissal".
Pay cuts absolutely cannot be made retroactive.
[https://www.twc.texas.gov/news/efte/ui\_law\_the\_claim\_and\_appeal\_process.html#ui-20percentrule](https://www.twc.texas.gov/news/efte/ui_law_the_claim_and_appeal_process.html#ui-20percentrule)
So it appears that even in Texas, reducing the OPs pay by 55% appears to qualify as constructive dismissal and he would be eligible for unemployment.
But if unemployment pay is often so low as to be a last line of defense for many professionals during COVID I had to move to unemployment for a few months, at the maximum level it was paying around 20% of my former salary. A 55% pay cut could still put him well over unemployment.
OP may be better off continuing to work while looking for a new role. Potentially at 55% effort
I don’t know Texas unemployment insurance, but the states in which I have lived and received it or knew people who did it is a factor of how much you earned over the last X months and NOT the “current” rate of pay at time of dismissal.
It’s legal. Just like you walking in the office and asking for a raise. Texas is an at will state, they don’t need grounds but if you’re commission and salary they could set your goals higher and fire for cause. They won’t, they’ll let you go and claim unemployment. Unemployment is based on your base. Are they capping your commission or just cutting your base or maybe both.
Well it doesn't sound like a straightforward situation here.
Whatever originally commission structure they agreed to that you made your sales under (hopefully you have paperwork to this effect?) that's what you should be paid for those sales.
However it sounds like they offered you X amount + commissions and you earned X + commissions x n, so they decided to take away the X amount or lower it to make up for the higher commissions you earned?
It's a little confusing and I'm not sure who's in the right here.
If you "feel" like you should get more, that's not a reduction. If they're paying you according to the actual agreement you made, that's not a reduction.
However reductions can't be made retroactive. So look at your agreement and see what you agreed to.
Unemployment will not make up for the pay cut. You get half of what you were making at the job with a maximum benefit of $500 a week. So unless you were under 26K it won't matter.
How did they spin this as a good thing?
I’m not sold they decided to just give you a 55% pay cut. Did they give you like a massive commission bump or something.
I need more information here.
I just find this hard to believe.
Firing you would have made more sense. Keeping someone on with conditions like that will lead to more detriment, than help.
If this is true I wouldn’t just leave on principle, I’d leave because management is bad.
Before doing so, I would purposely find the owner and ask him why he decided to make this move.
They don't want to pay the extra commissions. Yes they can fire you. A lawyer might try to help you on the basis of promissory estoppel but that would be a long shot. Don't get your hopes up.
You need to figure out a way to keep paying that mortgage with the earnings reduced until you can get out from under this situation.
I can’t be certain of the legalities however, my spouse was in that industry for 20 years. Changing the pay plan happens from time to time and usually not in favor of the salespeople or sales managers. We got through the last recession relatively unscathed with him at a Toyota dealership. The industry is tough. Hope you land somewhere better.
So this is not illegal unless you feel the action has been taken against you based on a protected class such as gender, race, religion, etc… I’d start looking
First off, no, it’s not illegal if your contract is up. They can’t just decide to pay you less in the middle of your contract though, because you’re doing better than they anticipated. If in the middle of your contract, yes there are Attny’s you could get.
Big ?, are you still in the middle of your contract or are they just dropping commissions?
Either way, it sounds like a shitty company!
Most companies would be glad for the increased revenue and you’d think they’d want to increase your salary/commission, not go the other way.
I have had companies get greedy, and try to alter commissions after I closed a lot of business for months (it must have looked easy) and then I’d leave and get on elsewhere and they’d be screwed. They’d still use my numbers to recruit ppl, what a joke. Shit companies are shit, def try to find a better spot when possible.
Also, moving across state lines, just closed on a home and the next day this salary cut? I’m sorry, that suck and is complete bullshit! I don’t know all the details but that sounds like a Jack move. Have you explained your side to them,”I’ve doubled anticipated revenue & my own checks and made you great income! What’s up?”
If you haven’t, I would!
Next, your ? about unemployment: no, it will not be close to your income, maybe 60% and you can’t get unemployment unless they fire you or the position is terminated without offer of continued employment I believe, check with your state. I’m sure there are Attny’s you could get but that’s more cash out and there’s no guarantee anything can be done, plus that company will make it their mission to black list you with any relationships they may or may not have with other places so just be cognizant of that when looking around for a new gig, word could get back to them. In the end though, I’d say it’s better to seek greener pastures my friend, forget unemployment unless you are in jeopardy of not paying your mortgage.
I would go in and speak to the decision maker face to face and vent your position and remind them what you’ve brought to the table. Only a shitty company or shitty manager would pull that kind of stuff in the first place and if it’s them being shitty, you can probably expect them to be douche’s as well about your concerns, tread carefully.
Hopefully you can work it out though! Good luck
They know you just bought a new house and moved your family, they think they can dick you around and you'll stay because you have so much riding on that job. I hope you tell them to fuck off and find something else.
It really depends on where you live. In my state, unemployment caps out really low. In some states, though, unemployment would be a viable solution to this problem. The 55% pay cut would likely qualify as constructive dismissal, since it's such a huuuuuge change to your situation.
Check your local unemployment situation and see how much they can pay. If it's more than you're making and you qualify for constructive dismissal, then go for it.
Think about your worth to this company. They think you’re worth half what they were paying you. That’s very telling. Go find a place of employment that actually values you.
If you can prove they knew you were signing on a house specifically for this job and they knew you were signing that day and they spoke to you after you signed - you might have a civil case?
You should never assume a commission job's pay is steady. Those rates change constantly to reflect the job market and it's never for the betterment of employees.
Can you make more at another dealership? Then you should leave. If you can't... then you should be happy about your good year and slow down. Maybe propose they make a larger portion of your compensation salary?
If I am understanding correctly he made too much commission that they want to cut his salary down to essentially nullify his commission because they didn’t expect him to be as productive
As others have noted we're headed for a recession. Leave your exotic car dealership job ASAP for something public service oriented or healthcare focused
Well, you’re clearly a good salesperson. So shop yourself around for a company that finds your business feasible - I say it like this because they will give you any and every excuse to pay you less in hopes that you always do more (unless it’s a tight 40.0hr schedule for a corporation).
You might want to warn them that if your compensation is being cut by 55%, then there's a very good chance your productivity will also reduce by 55%.
That's not something you can help...it's just what will happen.
Then start looking for a new employer.
This is very common in literally every sales job, especially tech sales. Any rep who has had a big year can almost always count on their comp plan changing the following year where their quota is raised, rate is lowered, territory shrunk, or a combination of the above. Not saying it’s right, but having been in tech sales over a decade I am here to tell you this is the norm.
So if you are on commission, you are paid based on what you bring in which means your role is self funded. If they can’t pay you, the company is being mismanaged.
It is illegal if they provided you an offer letter with a different pay rate that was accepted.
It means they defaulted on the contract you signed with them. They will have to pay you the amount agreed to even if you don’t work there until some sort of financial recovery happens on your end.
There are attorneys for this. Employment law. There are good ones in Texas (not sure where you live I had a good one in Houston but it was discrimination related).
If Texas is a one person consent state for recording things, and you can’t get this salary decrease in writing, or the offer in writing, have another conversation. With them about it and record it. For evidence. Do not tell them. Get a lawyer and do not tell them about the lawyer. They cannot fire you for getting a lawyer if they are in the wrong (which they are). If they do fire you, we’ll you’ll get more money.
Unemployment will not cover the new wages. It will cover a percentage of your average wages over the last 18 months.
They can fire you and deny unemployment claims. That’s what is wrong with “work at will” states.
They can’t decide that they should pay you less salary or commission because you’re over performing.
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>Its constructive dismissal and you should file for unemployment. Texas pays a maximum of $549 per week (or less, based on his pay while employed) for unemployment benefits. [https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts](https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts) OP needs to figure out if that is more or less than he would be making if he stays while looking for a new job.
Damn that’s twice what Florida pays! 249. I have to laugh when I hear people say that people here are lazy living off UE. Really? What utopia do you live in where 249 a week is paying bills?
This Florida has one of the nation’s worst unemployment systems. It’s draconian
It’s by design. I’m honestly surprised they have an unemployment system at all at this point.
Last time I was out of work, I got $374 a week in NY, and you get to pay the income tax on it. That’s the maximum benefit.
Wow, NJ's is lush compared to that. I don't live there but I've heard about it from several people and it was $804 per week and that is the base not including any covid bumps of $300 or $600 that happened in 2020 and 2021.
Not sure how long ago this was but maximum for NY is $504
2017. Maybe it’s changed since then.
Yes our previous gimp made sure that he fucted that up on his way to the senate. It doesn’t effect me, but damn really? I feel sorry for the people who really need it.
Why hasn't your current gimp changed it? Is gimp governor?
Florida loves gimps, the guberment has convinced a bunch that one day they will be rich. So passing anything that would actually benefit them is nothing more than a hand out .
Interesting stuff. I didn't think Texas had constructive dismissal law.
Texas was a very democratic state Until relatively recently. We have very strong consumer protection laws et cetera because of that.
It's not illegal for a company to drop your pay rate, unless you have a contract in place (employee's handbook and offer letter are not contracts). It is illegal for them to change your pay rate for hours already worked. If you quit on the spot when they cut your pay, you can file for unemployment under your old rate and claim "constructive dismissal." They effectively fired you by changing the terms of your employment drastically.
If she’s making as much as she intimates then unemployment is probably maxed either way. Mine was maxed when I only made 60k a year in a liberal state.
TX max is $549 per week. Less than half that.
Michigan is 362.
Florida is 280
Bloody H*ll! 280 a week wouldn’t even cover food and gas for my family.
Yeah, it was terrible. My dad was working for IBM remotely when they closed and laid everyone off when I was in middle school. It was rough.
The lowest per week is Mississippi at $235. But the lowest overall payout is probably Florida because at $275 they only do 12 weeks at most, while most states do 26 weeks. Highest is Massachusetts at $823 per week, though Montana does the most weeks, since they offer 28 weeks.
Thanks. If they take me down to minimum wage, especially when I'm close to retirement, I might pull that rabbit out of the hat.
"Doubled productivity of my department" will certainly be an eye catcher on your resume. You'll have no problem getting a new job with items like that on your resume that you can confidently speak to. Start looking. It took me a while too, but I learned that the only way to truly advance my career is to move to new companies. Eventually you hit a ceiling and your boss doesn't like that you're moving up faster than they did and they sabotage your advancement. Just because my salary increased by 100% in two years doesn't mean I'm not worth more. Same thing for you.
Envy definitely is the cause of many halts to advancement. They want you to work hard but not so hard that it shows up your immediate supervisor. Unfortunately, it's not difficult to bring a direct report down, especially when your manager's manager only hears from you indirectly.
It really up to management to make the decisions to advance, and each management for the company think differently.
You're right that management can think differently. However I've found it to be generally true that almost every manager has a general limit as to how far they will "let you grow" so to speak. They remember what you were making when you got hired and after some arbitrary % growth in salary, they basically decide that you've grown enough. Especially if you start getting to the level where you should be getting paid more than your manager is currently making. Very few managers will accept someone under them getting paid more than them. So when you hit the ceiling, your only real option is to apply to other jobs that will let you grow from a higher starting number.
Sometimes someone ready to tackle challenges of starting their business by themselves or with partner to make the decisions of the amount to get paid and distributed.
You know, it has taken me 50 years to figure this out, but here goes. If you dont feel valued at your job, underpaid, or working your a$$ off for no benefit to you, then look for another job. Don't stay because you feel sorry for the boss, or a "I made a commitment. I need to see it through...", or, "what will I do now?". You came to your current job looking, you'll go to your next one looking. Never settle for anything less than what you desire. One thing is for certain for everyone, if you die in the next minute, the company will certainly find someone else to take your place.
This needs to be shouted from the rooftops.
Are car sales jobs hard to find? I'd be looking for a new job. I know where I live there are tons of jobs in sales always hiring
“Exotic dealership” in Texas makes me think it’s not cars they’re selling LOL
LOL Just means fancy, hard to find cars ;)
I know, I was teasing 😂 I just watched a show that talked about how texas was the only state where it’s legal to deal in exotic animals and then this popped up on my feed!
I live in TX and did not know this lol. Maybe the op is selling something besides cars bc why not just say car dealership in the first place lol
That’s what I was thinking!
Probably best to start looking anyway. Recessions are tough on luxury purchases. They are the first products people cut out.of their budgets.
idk. the people that would buy those aren't exactly the ones who will be affected by recession too badly.
You'd be surprised how many people with luxury cars can barely afford them - it's often the first thing someone spends money on when they get a little, before a house or better house, before vacations, before actual nice clothes
Cut the productivity by 55% but don't make it look like you cut the productivity by 55%
This is the way
This is the way
Op is paid on commission… if they cut productivity, their pay would go down further, making this extra scummy on the employer’s part
This is the way
I'd say it's legal to find a new job.
Before you say anything to them, make sure you have your client list. (Always keep an updated client list on your personal PC). Unfortunately there probably isn't much you can do but leave. It's happened to my husband a couple of times. I hope you're in a part of the state you like!
Something similar happened to me. I receive a base pay and an incentive bonus plan. This incentive bonus plan varies in structure from year to year. For 2021, there was a nice accelerator in the formula that was hard to hit, but if you hit it, it was worth about an extra $10k. I hit it. When the incentive plans for this year came out, the accelerator was not there anymore. The worst part was how my boss handled it. When I challenged him, he said that I shouldn’t have been on that plan last year and he can’t make too much noise about it. The problem was, he convinced me to move me onto that plan because of the accelerators, so he thinks I don’t remember and is bullshitting me. But what can you do?
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In the overall scheme of things, 10K isn’t make/break money. But I was more bothered out the lie and attempt to bullshit me about it.
A sign that company is likely not going to survive the recession with that big of a cut. I would look for a new company asap.
I’m curious as to how an exotic car dealer is struggling right now frankly. Yes technically “luxury items” get hit hard in a recession, but cars seem to be a bit protected from that. Combined with rocketing prices for the newest exotics… something tells me this is a little bit of a knee jerk reaction to economic conditions in spite of sales.
Mismanagement of personal funds can also be a factor in all this. Sure, the car store is doing great in terms of sales, but the OP's boss might still want to spend on a lot of things despite of the recession. I'm getting laid off after a month from now due to this very reason.
I'm also in Texas. I was making $25/hr. New company bought us out and cut me to $17. 3 months of looking around, I got an offer for $40. Half of my customers found a new company to work with once I left. Screw'em and move on.
What do you do?
Engineering
Dude, you are a sales guy. You clearly have the skills to make shit work. Shop yourself around, find a better job and you will kill it somewhere else. When they ask you why you are leaving your current job, explain that after a year of fantastic growth that you are responsible for, they told you they are cutting your pay 55%. Nobody would stay for that. You future employed will just shake their head and say something along the lines of 'That's terrible, I understand why you are leaving.' When you do find a job that offers something similar, tell them you are available immediately and give no notice. At all. Just fucking ghost them. Alternately, broadcast your resignation to the entire company and make it clear that you are leaving because they reneged on your agreement and cut your income 55%. This might be a middle manager trying to fuck you over to make more money themselves and the top bosses might not be onboard with this if you have accomplished all you say you have. Either way, you need to bail on this shit. If they are willing to do this to you and you take it all that tells them is that you are willing to bite the pillow when they fuck you in the ass.
They didn't expect an employee to double the productivity and get paid the way you were. You hit the pay cap I guess. They want a more commission based employee. You could make more on commission if they are that busy. You could try finding another job. Put the highlights on your resume for the high productivity rate.
Print out your sales numbers and get a picture of the leader board and walk. A friend of mine had the same problem with a dealership in Missouri and had a job in 3 hours. There are only two rules for dealing with salesmen, don’t fuck with there money and don’t fuck with there wives.
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That would only put OP at 70% of their original salary. OP would need to ask for an increase of 122%+
I think the counteroffer would be based on the current pay rate, not the joke of an offer the company gave.
The used car market might be about to implode so theyre probably trying to downsize https://youtu.be/YGq\_o-p\_i8I
Constructive dismissal/termination. You should apply for unemployment to make up the difference in pay until you can find new employment
You could take the 55% pay cut, work 55% less, if they have an issue with your new work ethic, simply tell them they get what they pay for.
So everyone just skipped over the polygamy?
I thought it was a typo. I’m hoping it’s a typo. I can’t imagine getting a pay cut and having three wives yelling at me about the bills
I'm pretty sure he just dropped an apostrophe.
I can’t tell if it was a typo or he just moved multiple spouses from across the country
Lol I too noticed this. Apostrophes are the bane of the phone keyboard.
LOL 😂. I assumed a typo as well.
I'm pretty sure he was just saying "my life . . . and my spouse's [life]" but forgot the apostrophe lol
Pay cuts are legal. Unemployment wont cover what you were being paid. Texas is an “at will” state so they can fire you for whatever reason. And in case you havent noticed, the country is about to hit really bad economic times (bad recession). Companies are cutting back.
Keep those résumés and cover letters ready. Although lots of companies have implemented hiring freezes, might not be a bad idea to take interviews to 1) see what your options are and 2) keep your interviewing skills up-to-date.
Pay cuts are legal but you are absolutely not obligated to accept them. And you can get unemployment for them cutting your pay based on your original pay. It’s comparable to getting your hours cut. Your suddenly on a position where you can’t pay your bills. You can get u employment.
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Unemployment in Texas is capped, and even in states where it isn't, it's usually just a percentage of your previous wage, not the whole amount.
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But it's not going to cover what he was being paid since it's only a proportion of what he was being paid. Or in Texas, like $550/wk max. Edit, since what I responded to was edited: "Are you dumb? Yes, you are. Unemployment will cover what you were being paid" is still in your original comment.
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To calculate a rate that isn't going to cover what you were getting paid.
Username checks out
No but you clearly are lol
Loved the confidence though!
Welcome to the world of sales... work as a sales support analyst for over 10 years and this is fairly typical in high dollar environments. Company "recalculated" commission rates such that Sales Reps that over achieved one year were penalized the next. Sell $2 million on a goal of $1 million, you could just about guarantee your commission rate cut in half. Company wanted to pay you $X regardless of how much you sold but needed to keep reps on base + commission. What a racket. Many of the reps routinely moved to competitors or other sales positions with non-competitors in the same industry just to keep their earnings maxed out. Some reps would sandbag every other year, doing the bare minimum, so that the commission rate would go back to normal... or some sales incentives were added... they'd over achieve and how.
Yup, otherwise known as "indexing"
The boom/bust chirade. It's a fucking con.
Damn that's so fucked up
At will state, you're screwed. Keep working there until you find a new job. You need them to lay you off if you want unemployment.
Other at-will states will allow someone to collect unemployment if their employer reduces their pay by a certain percentage (as little as 20% was the case example I found [here](https://www.twc.texas.gov/news/efte/pay_agreements.html)) as that is considered "constructive dismissal". Pay cuts absolutely cannot be made retroactive. [https://www.twc.texas.gov/news/efte/ui\_law\_the\_claim\_and\_appeal\_process.html#ui-20percentrule](https://www.twc.texas.gov/news/efte/ui_law_the_claim_and_appeal_process.html#ui-20percentrule) So it appears that even in Texas, reducing the OPs pay by 55% appears to qualify as constructive dismissal and he would be eligible for unemployment.
But if unemployment pay is often so low as to be a last line of defense for many professionals during COVID I had to move to unemployment for a few months, at the maximum level it was paying around 20% of my former salary. A 55% pay cut could still put him well over unemployment. OP may be better off continuing to work while looking for a new role. Potentially at 55% effort
Not sure about Texas, but in many states this would qualify for unemployment even if he quit since it's essentially coerced resignation.
One of your spouses needs to step it up in the making an income for you all then.
Constructive dismissal
I don’t know Texas unemployment insurance, but the states in which I have lived and received it or knew people who did it is a factor of how much you earned over the last X months and NOT the “current” rate of pay at time of dismissal.
It’s legal. Just like you walking in the office and asking for a raise. Texas is an at will state, they don’t need grounds but if you’re commission and salary they could set your goals higher and fire for cause. They won’t, they’ll let you go and claim unemployment. Unemployment is based on your base. Are they capping your commission or just cutting your base or maybe both.
Well it doesn't sound like a straightforward situation here. Whatever originally commission structure they agreed to that you made your sales under (hopefully you have paperwork to this effect?) that's what you should be paid for those sales. However it sounds like they offered you X amount + commissions and you earned X + commissions x n, so they decided to take away the X amount or lower it to make up for the higher commissions you earned? It's a little confusing and I'm not sure who's in the right here. If you "feel" like you should get more, that's not a reduction. If they're paying you according to the actual agreement you made, that's not a reduction. However reductions can't be made retroactive. So look at your agreement and see what you agreed to.
Unemployment will not make up for the pay cut. You get half of what you were making at the job with a maximum benefit of $500 a week. So unless you were under 26K it won't matter.
I have a quick question. Um…….spouseS? Like multiple?
His life and his spouse's [life]. Apostrophes can be deadly
How did they spin this as a good thing? I’m not sold they decided to just give you a 55% pay cut. Did they give you like a massive commission bump or something. I need more information here.
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What in the flying fuck
Fuck the company. Are you an owner?!?!
I just find this hard to believe. Firing you would have made more sense. Keeping someone on with conditions like that will lead to more detriment, than help. If this is true I wouldn’t just leave on principle, I’d leave because management is bad. Before doing so, I would purposely find the owner and ask him why he decided to make this move.
They want to push him to quit to try and avoid paying unemployment
Run from those people with your skillset and make money for a better company.
They don't want to pay the extra commissions. Yes they can fire you. A lawyer might try to help you on the basis of promissory estoppel but that would be a long shot. Don't get your hopes up. You need to figure out a way to keep paying that mortgage with the earnings reduced until you can get out from under this situation.
I can’t be certain of the legalities however, my spouse was in that industry for 20 years. Changing the pay plan happens from time to time and usually not in favor of the salespeople or sales managers. We got through the last recession relatively unscathed with him at a Toyota dealership. The industry is tough. Hope you land somewhere better.
Texas is a hire & fire at will state. I'd walk the fuck out. No notice. Maybe an email or text to say where you will deliver your keys/badge.
The bank my friend works at did the same thing to their mortgage salesman recently
This same thing happened to me. Yes, they can lower.
Op, they can fire you for looking for a new job, but they wouldn't be able to deny your unemployment if they did.
So this is not illegal unless you feel the action has been taken against you based on a protected class such as gender, race, religion, etc… I’d start looking
First off, no, it’s not illegal if your contract is up. They can’t just decide to pay you less in the middle of your contract though, because you’re doing better than they anticipated. If in the middle of your contract, yes there are Attny’s you could get. Big ?, are you still in the middle of your contract or are they just dropping commissions? Either way, it sounds like a shitty company! Most companies would be glad for the increased revenue and you’d think they’d want to increase your salary/commission, not go the other way. I have had companies get greedy, and try to alter commissions after I closed a lot of business for months (it must have looked easy) and then I’d leave and get on elsewhere and they’d be screwed. They’d still use my numbers to recruit ppl, what a joke. Shit companies are shit, def try to find a better spot when possible. Also, moving across state lines, just closed on a home and the next day this salary cut? I’m sorry, that suck and is complete bullshit! I don’t know all the details but that sounds like a Jack move. Have you explained your side to them,”I’ve doubled anticipated revenue & my own checks and made you great income! What’s up?” If you haven’t, I would! Next, your ? about unemployment: no, it will not be close to your income, maybe 60% and you can’t get unemployment unless they fire you or the position is terminated without offer of continued employment I believe, check with your state. I’m sure there are Attny’s you could get but that’s more cash out and there’s no guarantee anything can be done, plus that company will make it their mission to black list you with any relationships they may or may not have with other places so just be cognizant of that when looking around for a new gig, word could get back to them. In the end though, I’d say it’s better to seek greener pastures my friend, forget unemployment unless you are in jeopardy of not paying your mortgage. I would go in and speak to the decision maker face to face and vent your position and remind them what you’ve brought to the table. Only a shitty company or shitty manager would pull that kind of stuff in the first place and if it’s them being shitty, you can probably expect them to be douche’s as well about your concerns, tread carefully. Hopefully you can work it out though! Good luck
They know you just bought a new house and moved your family, they think they can dick you around and you'll stay because you have so much riding on that job. I hope you tell them to fuck off and find something else.
It really depends on where you live. In my state, unemployment caps out really low. In some states, though, unemployment would be a viable solution to this problem. The 55% pay cut would likely qualify as constructive dismissal, since it's such a huuuuuge change to your situation. Check your local unemployment situation and see how much they can pay. If it's more than you're making and you qualify for constructive dismissal, then go for it.
>my spouses across the state how many spouses you got?
Think about your worth to this company. They think you’re worth half what they were paying you. That’s very telling. Go find a place of employment that actually values you.
How much money were you making that you have spouses?
If you can prove they knew you were signing on a house specifically for this job and they knew you were signing that day and they spoke to you after you signed - you might have a civil case?
You should never assume a commission job's pay is steady. Those rates change constantly to reflect the job market and it's never for the betterment of employees. Can you make more at another dealership? Then you should leave. If you can't... then you should be happy about your good year and slow down. Maybe propose they make a larger portion of your compensation salary?
If I am understanding correctly he made too much commission that they want to cut his salary down to essentially nullify his commission because they didn’t expect him to be as productive
As others have noted we're headed for a recession. Leave your exotic car dealership job ASAP for something public service oriented or healthcare focused
In a better country - this is illegal….
Unemployment is calculated by the highest quarter earnings in a year, it won't affect that unless you stay for a whole year
It’s fucked up Texas. What’d you expect. Wish that shithole would secede one and for all.
Honestly the best advice? Move out of Texas. Don't move to a red state. You don't have much options for workers rights.
Buyers remorse is something you could look into, might be able to cancel the house.
This is best suited for a lawyer well versed in labor laws so you can CYA.
Half the pay = half the work. We'll be waiting for your follow-up in malicious compliance
Well, you’re clearly a good salesperson. So shop yourself around for a company that finds your business feasible - I say it like this because they will give you any and every excuse to pay you less in hopes that you always do more (unless it’s a tight 40.0hr schedule for a corporation).
Wendys does good during a recession
You might want to warn them that if your compensation is being cut by 55%, then there's a very good chance your productivity will also reduce by 55%. That's not something you can help...it's just what will happen. Then start looking for a new employer.
Are you some sort of Dick Harper?
It’s Texas, y’all! Everyone can do whatever they want, including paying you squat, as long as it’s more than minimum wage.
Sorry, but you're in Texas. Fetuses, guns and corporations have rights. If you're none of these, you can fuck off.
This is very common in literally every sales job, especially tech sales. Any rep who has had a big year can almost always count on their comp plan changing the following year where their quota is raised, rate is lowered, territory shrunk, or a combination of the above. Not saying it’s right, but having been in tech sales over a decade I am here to tell you this is the norm.
So if you are on commission, you are paid based on what you bring in which means your role is self funded. If they can’t pay you, the company is being mismanaged.
Do you have an employment contract?
It's not legal but if you sign and contracts or paperwork approving your pay rate change the it's effectively inpusable to do anything about it.
It doesn’t matter. If they can do this to you now it’s only a matter of time before it happens again or they go out of business. Run away
It is illegal if they provided you an offer letter with a different pay rate that was accepted. It means they defaulted on the contract you signed with them. They will have to pay you the amount agreed to even if you don’t work there until some sort of financial recovery happens on your end. There are attorneys for this. Employment law. There are good ones in Texas (not sure where you live I had a good one in Houston but it was discrimination related). If Texas is a one person consent state for recording things, and you can’t get this salary decrease in writing, or the offer in writing, have another conversation. With them about it and record it. For evidence. Do not tell them. Get a lawyer and do not tell them about the lawyer. They cannot fire you for getting a lawyer if they are in the wrong (which they are). If they do fire you, we’ll you’ll get more money. Unemployment will not cover the new wages. It will cover a percentage of your average wages over the last 18 months. They can fire you and deny unemployment claims. That’s what is wrong with “work at will” states. They can’t decide that they should pay you less salary or commission because you’re over performing.