What is the name of your state (only U.S. law)? CA
I was let go from my outside sales position in March 09.
Quickly took another sales position, same industry, with a 3 month base of $2,325, after that a 3 month base of $325. (this $325 represents car & phone allowance but is considered salary as the company does not reimburse expenses) commissions would be paid on all sales. From April 15th - July27th I made approximately $2,500 in sales, netting approximately $150 in commissions which have yet to be paid.
The owner of the company asked me how I was going to survive and I asked him if he was letting me go. He responded that he does not fire anyone in a commission based position, they can leave at will (in the 3 months I had been there, 2 other reps had left who started one and two months before me, essentially a churn and burn environment.) i requested to go 1099 so that I could at least work was in the pipeline (no guarantees that they would close) and work another job. He refused this offer.
The following Monday, I gave my notice. I reopened my claim and received my continued claim form as well as notice of hearing for 8/26. I gave the reason for leaving as reduction of wages to $1.88 an hour and falls below prevailing wage. I based this on EDD Section 22-1256
(3) . . . the leaving is due to the fact that an individual after diligently working on a piece-rate or commission basis for a reasonable time is paid substantially less than the wages prevailing for similar work in the locality.
My commissions earned in 2008 were approximately $40,000. For the two months of 09 that I worked for my prior employer, it was approximate $7,000.
Clearly, a big difference. Do you think it will fly?
I kick myself for taking this job, but was afraid of losing all benefits due to refusing work. I'm too honest to have lied on my claim form that I had not refused any work.