Inequitable Annual Bonus for Sales Personnel

Okie

Would a Sales person located in Texas have any recourse against a company located in Colorado for an annual incentive plan that sets the bar for the initial commission at a percentage that is the same for everyone regardless of the size of his/her territory? For instance, growth in the form of the lesser of 7.5% of personal territory 2006 sales base or $200,000. If person X has a small territory (ex: $500,000) he/she would need to grow his/her territory by $37,500 to begin earning a bonus. Person Y with a much larger territory (ex: $1,000,000) would need to grow his/her business by $75,000 before being able to begin to earn a bonus. I would appreciate your thoughts on this incentive plan and any potential legal issues. Thank you.

FunHRBanker

My gut says no. The percentage is the same. If you had a monetary requirement, my answer may be different. You are treating all sales people the same.