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Jul22

Comp Plan Request

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Is a company required to provide a compensation plan (aka commission structure) if an employee in a role requests one?

This would depend upon the state. Some states do require that employees be informed in writing what their salary/compensation structure and benefits are. Other states require that employees be informed in advance, in writing, when their compensation package changes.

Even in states where it is not a legal requirement, the best practice in the HR field would be to inform employees in writing of their commission structure. This would prevent disagreements in the future and even motivate the employee. Any company that refuses to provide a commission structure in writing is poorly managed, and top sales people would think twice about working there. That is because a failure to put this vital information in writing suggests that commissions are paid only at the whim of the owner.

This entry was posted on Tuesday, July 22nd, 2008 at 9:10 am and is filed under
Human Resources Management.
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