Paylocity Corporation maintains more than 500 account executives to sell its services around the country, the complaint for this class action says. These account executives are paid commissions on the sales they make for the company. For its Fiscal Year 2021, the complaint alleges that account executives were paid lower commissions than they expected, and that Paylocity has never made up the difference.
The class for this action is all commissioned account executive who worked for Paylocity during Fiscal Year 2021 and who submitted sales deal during Fiscal Year 2021, but who were paid commissions at the Fiscal Year 2022 rates.
Paylocity’s business is payroll and human and resources. It hires account executives to sell its products and services around the country.
Account executives may have different tiers and percentages, depending on their territories and assignments, but those who were subject to the Fiscal Year 2021 plan all had the same commission agreements and arrangements as set forth by Paylocity. The plaintiff in this case, Richard Vidiri, worked for Paylocity as an account executive from around March 10, 2014 to sometime in February 2022.
Under the Fiscal Year 2021 plan, Vidiri was paid 50% of his commissions when he submitted a new deal to Paylocity. The other 50%, the complaint claims, was paid to him “in the pay period following the first payroll processing pursuant to the sale.” The complaint alleges that this arrangement was the same for other account executives subject to the 2021 plan.
However, the complaint alleges that Paylocity underpaid commissions owed for sales made Fiscal Year 2021 that were not fully paid in Fiscal Year 2021. It claims that the company did this by treating them as if they had been made in Fiscal Year 2022 and therefore were subject to the lower 2022 commission.
For Vidiri and the other account executives, Fiscal Year 2022 began on July 1, 2021, so the complaint alleges that all sales made before that—for example, in June 2021—should have been paid at the higher 2021 rate. However, Paylocity paid these commissions on later 2021 deals at the lower 2022 rates. Vidiri estimates that this resulted in his being underpaid by around $70,000.
The complaint claims that the account executives were dissatisfied with the 2022 rates and complained to Paylocity, and that Paylocity raised the 2022 commissions back to the 2021 level. However, the complaint alleges, it did not go back and restore the missing commissions for the 2021 deals that had been paid at the 2022 rate.
The complaint asserts that Paylocity has breached its agreements with its account executives who were subject to the 2021 plan by failing to pay them the commissions agreed upon for deals made within that fiscal year.
Article Type: LawsuitTopic: Contract
Most Recent Case Event
Paylocity Account Executive Lowered Commissions Complaint
September 12, 2022
Paylocity Corporation maintains more than 500 account executives to sell its services around the country, the complaint for this class action says. These account executives are paid commissions on the sales they make for the company. For its Fiscal Year 2021, the complaint alleges that account executives were paid lower commissions than they expected, and that Paylocity has never made up the difference.
Paylocity Account Executive Lowered Commissions ComplaintCase Event History
Paylocity Account Executive Lowered Commissions Complaint
September 12, 2022
Paylocity Corporation maintains more than 500 account executives to sell its services around the country, the complaint for this class action says. These account executives are paid commissions on the sales they make for the company. For its Fiscal Year 2021, the complaint alleges that account executives were paid lower commissions than they expected, and that Paylocity has never made up the difference.
Paylocity Account Executive Lowered Commissions Complaint