Salaried going to Straight Commission

What is the name of your state?What is the name of your state?NJ

I was hired in a start up company on salary predominately in sales. Company said they would review progress at end of 6 months. At the end of 6 months I find out there are no more funds available to keep company going because there are not enough sales to support it. They said it was not due to any fault of mine but they were losing too much money on high salaries to put any more in - "its business." So now they want me to go on straight commission. They are going to pay me 10% on gross margin (I have little control on margin), they will pay my travel expenses when approved by them in advance and office supplies. After looking at the commission schedule I would have to beat the plan by more than 200% to even hit my current salary. Product is shipping this fall but they are small test orders at this point. Baring a complete miracle I do not see us hitting that kind of volume for a couple of years. My question is will I have good cause in quitting because I was hired on salary and this is a new compensation not initially agreed with and be able to recieve unemployment? Or do I have to try it for one month to show I gave it a chance but I will be eating bread and water for 30 days? Many thanks for any help/comments

Only someone from the NJ UC commission can answer your question definitely. I can tell you that in most states (although I do not know about NJ specifically) a reduction in pay is seldom a good reason to QUIT. Why should they pay you to quit a job so that you get NO income instead of SOME income? But in many states, a reduction in wages is a valid reason to file an unemployment claim for partial benefits to make up for some of the difference.

You'll have to ask the NJ UC commission how they would handle it.

NJ UC won't talk to me until I file. I did talk to a couple of lawyers and they said I had a better than even chance of collecting unemployment. However, it all depends on the commission ruling which they can't predict. One idea is apparently the terms of my employment changed. I was receiving regular paychecks- now who knows when I'll receive a check. I can not afford to wait 30 to 60 days to receive a paycheck so unless they can accomodate me it is a form of termination to make me wait for payment.

I understand, but I can't predict what the NJ UC would say any better than anyone else can.