JCI Sales Reps Sue Company Over Commissions Change
JCI is one of the largest security manufacturers and integrators worldwide. Now, it is facing multiple lawsuits and growing public complaints about changes to its sales compensation plans.
In this report, we examine the claims in the lawsuit, comments from employees we spoke with, the company's response and likely defenses, and its current financial situation.
Executive *******
** *** *** ****** - *** legal *** *** ***********.
** *** ***** ****, ** ** too ***** ** ***** ** *** is ******* ***** ***** **** ********** have *****, *** *** *** **** its **** ******, *** ***** ********* like *** ********* *** ***** ******* in *** **** **** *********. **** if *** ** ****** ** *** faith ****, ** ** ******** ********* that **** *** ***** ***** ***** on *** ***** ********* **** ******* technically.
*******, ** *** *********** ****, *** faces ******* **** ** **** ******* is ******** * ******** *** *** various *** *********** ** *********** ****** against *** *******, **** **** ******* us **** **** *** *********** *** selling ** ******* ********* ** **** case **********. *** ***** ****** *** more ** ********* ***** **** ***** commissions ** **** *********.
**********
******* ********, ***** *** ****** ******* ***** growth, ** ******* ** *** ******* of ********* *** ********** ********* ** avoid ****** ***** *************** *** ******** staggered *********** ***** ********** *********.
********* ** *** *********, *** ******* ************ *** "*************" commissions *** **** ***** ***** ******** in ******* ****. *** *********** ******** to **** ** ********* ** ******* for **** ** *** "******* *******" sales ****, ********* ***** ** ****, fire, *** ********.
*** ********* ** ****'* ********* ***** the ******* ** ********** **** ** has ******** *** ********** ********* ******* providing ******* ** *** *******. *** company **** ******** ** ******* ********** information ***** *** ****. ********* ******* that *** ******* ******** ********* **** them **** **** ** ******* ****** payments.
** *** *********** ** *** **** and ********** **** *********, ** ***** that *** ************ ***** ************* ******** morale *** *** **** ***'* ****-**** sales. *******, *** ******* *** **** strong ******** ******* *** ******** ****** based ** **** ********* **** **** submitted ** *** *******.
**** **** ******** ******** ** ** *** ********* Business *******, ***** *** *** *****. ****,*** * ***+ ******* ******** *********** **** ****** *** ********* ********* the *******.
Timing *** ***** ******
*** ********* **** **** **** ***** "backlogs" **** ****** **** ***** ** the **** **** *** ********* *** changed ******* ** * ***** ****** in ********* ****. *** ****** ********* financial ********* *******,********* ** *******.** * ****** ** *** ****, JCI ******* ****** ***********, *** **** were ***** ** *** "*******," *** employees ****.
Lawsuit ******
*** ******* *** ****** *** ********* filed *** ******** ***** ****** ** January **** ** ****** ** *** company's ***** *************** **********. ********* ** the *********, *** ********* *** ******** under * "********** ***** ********* ****," which ******** ********* **** *.*%-*% ** the ****** ***** * ***** ******** as ** "*********."
*** *******, *** ********* ******** *** sales ********* ** ******* **% ** commission ***** ****-**** ********* ******* *** the **** ********** * "*******" **** out ** ******** ************, ********* ** the *********. *** ** ******** ****, the ******* ******** ******* *** ********** structure, *** ** **** ********* ** would **** ****** ********** *********** ** existing *********, *** ********** *******.
***** *** ********* ***** ********** ********, these ******** *** *** **** *****, meaning **** ***** **** ** ******** that *** ****** *** ** ****** years ** ** ********* ******* ** employee's ************.
*** **** ** *** *** ***** employees, *** ****** ********** *********** ******** to ******* $**,*** *** $***.***.**. ***** on ** ******* ** *** *********** owed ***** *** ******** ** *** named **********, ***** ************ ******* *** 400 ********* ***** ** ***** $** million. **** ******** ** ****** ************. According ********** ****, *** ******* *** **** **** 7,700 ***** ********* ********, **** **** in *** **.
***** ******** **** ** ****-******** ** individuals *** *** ****** ********, ** suggests *** ****** ** ********** *** be *** ******* **** **** ** stated ** *** *********.
*** ******* ****** ******* ****** ** contract, ****** ** *** ******* **** of **** ***** *** **** *******, unjust **********, ****** **** ******* *** claims (*** ******-***** *********), *** ******** Wage ******* *** ****** (*** ********-***** employees). ***** **** *******, *** ********** are *******:
declaratory ****** ******* **** Johnson Controls is required to pay commissions to the Named Plaintiffs and the Class going forward in accordance with the terms of the Parties’ agreementand ****** ** *******, ** *** ***** ** *** Commission Sales Incentive Planunder ***** *** ************ ************ **** *********’* ******** *** ********. [******** *****.]
Contract ********* ********
***** ********** ********** ******* ******** **** year ** ****, *** ******* ********* maintained * ****** ** ****** ***** representatives ********** ***********, ********* ** *** complaint. ********* *** ******* ** ***** to ***-************ ***** ********* ******** * payout ** **% ** ***** ********** commissions, ********* ** *** **********.
*** ******* ********* *** ******* ********* in *** ********* ** *******:
*** **** ******** ******** ***** ********** allege **** *** ** **** *** agreed ** *** *********** ***** ** the **** ** ****** **** **** were ******:
“*** **** ********* ******* ***** ** the ********* **** ** **** **** will *** **** ***** ********* ***** this **** ***will ** **** ** ********** **** *** **** ** ****** ** **** ** *******.” [emphasis added]
** **** ** **** *** ********, it ***** ********** ***'* *** ****.
*******, *** ****** ********* *** ********** Sales ********* **** **** *** ********* as ******** ** *** ****, ** we **** ****** ** ********* ******* any ******** *** **** ********* ******* Controls ** ******* ****** *** "*************" commissions ********* ** ******* ** ******** conditions ** ***** *******.
Company's ********
*** *** *** *** ***** * response ** *** *********. *** **** remains ******* ** ********* ******* *****.
** ** ***** ** ****, * representative *** *** ******* **** **:
*** ******* ** *** ************ ** directly **** ** *** ******* ** our ******, *** ** ********* ****** our ********* ** **** ******* ***** growth *** ************.We ******** *** ***** ********* ******* ** ****** ***** **** *** ******* ******** to deliver smart, healthy and more sustainable environments for our customers. We will continue to assist our sales organization to ensure a seamless ********** ** *** ******* *********** *****. [Emphasis Added.]
*** *** ************ ******** ** *** whether *** *********** ** *** ***** contracts *** *********** ** *** ********* was ******** ** ******* *** ******* intends ** ***** *** *******.
JCI *********
***** ******* *** ****** *** *********, including *** *** *** ************* ** the *******, ****** ** ***** ** IPVM ***** *** **** *** *** commission ****** ******. *** ** *** employees ****** ** *** **** ***** division, *** *** ****** ** ********.
*** ********* **** **** **** *** most ****** ********** ******* **** ********** and **** *********** **** ** ***** past. ***** **** *********** *** "*************" commissions, *** ********* **** **** **** the ******* ******** *** ********-***** ********** structure **** * *****-***** ******.
*** ******* ******** **** ****** *** likely ******** ***** *** *** ******* as ***** *************** ***** ******* ********** to ****** ***** ****** *************, *** employees **** ****. ******-***** ******** **** largely **** *********** ** *** ***** representatives' ********** *** *** ******* ********** the *******, ********* ****.
"* **** *** ****** *** *** of *** ***** ***," *** ** the ********* **** **, ********* ** JCI's ****** **, ***** *********** **** calendar **.
"*******-******** *** ******** *** ***** ** sales," *** ******** **** **. "*** had ******* *** *********** ****** ***, talking ***** ****, ******** *** '**** are ** ***** ** **? ** we **** ** *****?'".******* ******** **** us **** ******** ** *** ******* quietly **** *** ***** ***** "'*** need ** ***, **** ** *********.' Every ****** ******* **** *** ****** sue."
*** *** ******* ***-**** "******" ******** to ********* ** **** **** ****** to *** *** ********** *********, *** they **** *** ***** ** **** employees **** **** *** **** **** conditions **** ** *** ***-******* **********, the ********* ****.
************* *** ********* ** ******** ************* ******* *********:
Slowing ******
** *** ***** ***** ***'* **** merger **** ****, *** ******* *** struggled **** ****** *** ******* ******* growth.
*** ***** *** ****** **** ****, which ***** ****. ** ****, **** up *% **** *** ******** ****, slightly ***** *** **** ** ****** in **** *** ****. *** *** fourth ******* ** ****, *** ***** rose **** *% ****-****-****.
*********, *******, ******* & ************** ******** for **** **** ** ****** *% from *** ******** ****. **** **** to ****, **&* **** **%.
** *** ******** *******, *** ******* also ***** **** ** *** * "record ******* ** $**.* *******," ***** increased *% ****-****-**** ***********. ********* ** the **********, *** ******* ********** ******* contracts *** ***** **** ***** **** been **** * ******** ** ******* under *** ****** ********** *********.
*** *****,******** ** **** ******* **** ********, ******* **** ***** ******** ******** 1% ***********, **** *** ****** ******** division ********* *% ** ****. ** the ******** ******** ****, *** ******* announced, "******** ********* ******* **$**.* *******, ********* *% *********** ****-****-****," ****** we ******* ** ***** **** ** that ** *** ** ****** ** completing ******** *** ** *** ***** attack, ***** *** ********* **** **** $23 ******* ** *** ******** *******.
Likely *** ********
***** ** *** *** *** ***** any ********, *** *** * ***** of ********* ********* ** *** ***** if ** ***** ** ******* *** lawsuit ** ****** ******* ********. *** instance, ** *** ******* ** *** contracts *** ***** ********** ********, *** company *** **** ******** ****** **** options *** ******** ** ********* ***********.
*** ******* *** **** ***** **** no ******** ******* ** ***** ** no ******* ******** ********** ******* **** the ***** ********* *** ********* **** and ***** **** ***** **** *** to ******* *******.
*** *********** ***** ********* ******* *** ******* *** ******* ** commissions. *******, **** ******, ********* ****** and ******** ******* ******* ********** ********* and ******* **** **** ****** ** paid.
Next ***** ** *****
********** ****** **** ** ********* * ******* ** ******* *****, meaning **** *** ********* *** ***** mid-February ** ****** ** ******. *** company *** **** ****** * ****** to ******* *** *********.
*** ********* ******* *** ***** ***** the ******* ******** ** *** *********, allowing **** ******* ** ****** **** documents *** ***********, **** ** ******** commissions ** ***** *********.
Next ***** **** ***** ****
******* *** **** ** ***** ** court, ** ******* *** **** ** do **** *** ***** ****. ***** it **** *****, ***** *****, ***************, to *** **** ** ***** *** revolt? ** **** ** **** **** sense ** **** ***** ********* **** are ********** *** *** ****** ***** quota?
** ** *** *** *** **** answers *** *** ** ** ** navigating ********* ********* **** ********* ** deliver ********* ******* *** ********* *********** who *** ********* ** **** *******.
**** ******* *** ***** **** **** they ******* ** *** ********** (*** will ****** ********) ** **** ****** out ***** *** ******** **% *** at *** *** ** **** *****. Instead ** ******* ** ***** *****-*****, it *** ** ** *** ***** team ** ****** *** **** *** aspect ** * *********** ** **** provided. **** **** ** ***** *** we *****'* ******** ** ** ***** 3 ***** **** ******* **** **** though ** **** ****** ** ******* 1st. **** **** ** *** ***** people!
*’** **** ***** *** **** **** with * ****** ** *********.
* ****.
******* **** ***** ************ ****** *** annual ***** *** **** *** **** of *** **** ******* ** *** in *** ************ *** ******** ** across *** *********. * *** *** of *** ** *** ****** ********.
* ** **** ***** ** ******* me **** ********* *** ******* ******* commission ***** **** *** * **** month ***** *** “****-****” ******.
** ** ****** *** *** *** me ******* *** ***** ** **** wasn’t * ****-****. **** ****** ******* is **** *********.
**** *** *** **** *****.
** ******** ********* ** ******* ******** the ******** ********** *********** ***********, **** to ***** **** **** ****** *** told *** ***** **** ** * national ******* “**** ** *****, **** year *** **** **** * **** you *** ********** ** *** **** of * ******** ****”
**** **** ***** “*** ***********”. ***. We **** **. ***** ** * lot ** **** *********** *** *** hide ** *** **** ***********.
**** ***** ***** *** “****-****” ******
*** ***** *** ********,***********:
** **** *****,a ******** **** ** ** ********** ******** ******* **** ***’** *** ******** looking *** **. ******** ***** *** also ****** “*********** *****,” “***** ******,” and “********** ******.”
********* *** ********* **** ***** ***** of ***** ** **** **** ****’* the ****** ** ***** ** **** work *** ******—**** **** ** **** into **** *** ******* *** ****** on **** ****. ****’** **** ********* because **** **** ** ****** **** you ***** ****** ****, *** **** they **, **** *** ** ********** rewarding.
** #* ****, *** ********* ** whether ** *** ********* ***** ** a "********":
** ** ****** *** *** *** me ******* *** ***** ** **** wasn’t * ****-****
**** ***** ***** **** - ** I *********** ******* ******* ** !@#$ me *** **** ** *** *** when * **** ** ** ** sales.
* ********* *** *** ** ***** and **** **** ******* ******* *** because * ***** **** ********** **** convicted *******************, **** *** *********** ****** *** was ****** ** ******* ** ** how **** *** * '**** ****' and *** * *** * '**** player, *****?' *** **** ********** *** expect ** ** ****** **** ******** of ****** * ******.
** ** ************** (*** *****) ***** from ***** *** ******** ***** ****** - *** ** ** **** *** norm **** *** - ** ***** in ** **********.
**** ***** **** **** **** ** your **** ****: ********* **** *** only ****** ** ********** *** ****** year ** ***** *** ***** *******, but **** **** ** ** *** active ******* **** *** ***** ** distributed *** ********* **** ** ** eligible.....So ** *** ***** ** *** you **** *** *** *** ***** for *** **** **** ******* **'* not **** *** ********* ***** *** / *****.
******: *** ***** *** ******** ****** from **** ** *** ********* *** spoke ** **** ***** *** ****** of *** ********** ******.
**** **** **** ******** ** ** with *** **** *** **********? *** they *** ** *** *** **** to ******* ***** ** ****** *** costs?
*** *** **** ********** ******, ****** Demands $** ******* - **** ***********
******:
* *** ******* ** *** ************ **** *****, *** ***** *** now ** ***** ********** **** ** states ********* *******, ********, *******, ******, Indiana, *** ****, *** ******, ***** Carolina, *********, *****, *** *********. ******, there **** * ***** ********** **** just *** ******, ****** *** ********.
** ********* *** **** ** ********* named *********** ** ********** ******, *** plaintiffs *** **** *** ***** ********** state **** **** *** ***** *** greater *******.
** **** ******** ** ***** *** case ** ** ********.
******:*** *** *** ******** *** ********* investor's *********** **** *** ******* *** **** quarter **** *******: