definition of "net sales"

[kathy]

I work for a design consultant company in Connecticut. In a letter of agreement I have with my employer, I am to be compensated with a base salary plus commission. The commission is to kick in when I do "net sales" or "net revenues" of more than a million dollars.

To me, "net" means gross sales less normal out-of-pocket expenses, e.g. travel, courier service, etc.

I have just learned that if my employer chooses to outsource work to independent vendors on business that I have obtained, they consider this an outside expenses and the portion that is commissionable to me is the difference between what the outside vendor charges us and what I am then able to bill a client for. Needless to say, if I want to keep a client, I can't upcharge much.

Can my employer arbitrarily define "net sales" without defining it to me? I stand to lose $20-30,000 in commissions because of this.

Help!!!

 

[Attorney_Replogle]

Unfortunately you are now in the ambiguous contract language zone. Your idea of what net sales meant at the time of the signing of the contract may have been the same as the employer. In any case, the employer does not have a right to change the definition of any key term to the contract without your knowledge and consent (preferrably in writing). Your idea of what net sales means may be what the average, reasonable person and company in your locale thinks of too. But to find this out and have your employer live up to it, you will have to apply some pressure, it seems. I would suggest having your employer and you submit to a mediation to determine the contract's meaning (and thus your salary). However, you should also consult with a businenss attorney near you. Look one up at attorneypages.com.

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Mark B. Replogle