Expert: Timmy Chou - 3/2/2002

Question
Hello Sir.   I work at a auto recycling yard, or junk yard as most people call them, and have been there for over 5 years.  Recently my employer decided to put the counter sales people, which I am one of, on a commision on the amount of sales we make.  Here is the problem, he knew several years ago when this was suggested that I did not want any part of it number one!  2 weeks ago he started this commision thing and I receive an hour pay raise so that I was making $10.00 per hour plus my commision.  This last week, he stated that he was going to raise the amount that we were going to get on the commision.  Nothing was ever said about lowering our hourly pay rate!  Yesterday when I received my pay check my hour pay rate was dropped to $8.50 per hour with out any notice to me and without my permission!  My question here is, does he have the legal right to do this?  If it matters, I live and work in the state of Ohio, USA.  Any help you could afford me would be greatly appreciated.  I would like to have an answer to take to work with me on Monday AM when I have to go back to work..  I am even thinking about contacting Labor relations on this matter...   Thanks in advance for anything that you can put into this matter!

Jim Sutley Sr.

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is unfortunately very typical.  I am not a lawyer, nor can I mediate any dispute with you alone but I can respond to your question from my business consulting experience. Note that this may have legal factors and you may wish to consult a labor attorney.

As far as I know, no one can mess with your pay rate without your permission retroactively.  It is illegal and you would have a case in a labor dispute.  They can however (in some states) announce a change in pay structure and give you a "take it or leave it" choice.  This is not true in every state but is generally true in so-called "right to work" states.  You must take immediate steps to protect your position.  Hopefully you have an employment contract of some sort.  If so, the terms of the contract will be your guide.  This is true even if the contract is oral.  If I were you I would prepare a letter requesting a "correction" of the payroll "mistake" from last week, stating that you had no discussion with anyone about changing payment terms.  I would also, in the same letter, request that any further proposed changes to your wage scale be put in writing as you are no longer comfortable with the procedure.  Also, do your best to write down as much as you rememeber about any conversations over the years with people regarding the commission idea.  Make sure you document who said what, and at what time, especially if you were given assurances about protecting your pay or about not requiring you to do the commission thing.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution
methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered
before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find
successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record