JCI Seeks Dismissal Of Sales Rep Suit, Plaintiffs Respond
Earlier this year, JCI was sued by JCI employees, proposing a class action against one of the US's largest industrial and security companies. Now, the case is proceeding with both sides filing arguments.
The company filed a motion to dismiss the complaint and plaintiffs have filed their opposition.
In this report, we examine JCI's arguments for dismissal, the plaintiff's objections, and the status of the case.
Executive *******
***'* ********* ***** ** * ****** in *** ****** ********** ********* ******* that ** *** "************" ****** *** agreements ** *** ****. *** ********** counter **** *** ******** ** **** clause ** "*********" *** ****** ** construed ** ***** *****. **** **** suggest **** *** *** **** *** backlog *********** ** * "***** ****."
********** **** ******* ******* ******, *** has **** ********** ********** *******, **************** *** *********** *** ***** ********** HVAC ******** ** ******** $*.* ******* *** ******** ******** ********* ********* ****** ******** **** *** ******** ********. *** company **** ***** ******** **** ******** investor ******* **********, ***** **** *$* ******* ***** ** *** ******* earlier **** ****.
*** *******'* ****** ** ******* ******* an ********** ******* ** ****** *** actions ******* ****** **** *** *******. However, ** *** ***** ***** **** the **********, *** ******* *** ******** a ********** ** ***** ********* **********.
* ************** *** *** ******** ** comment ** ****, ******, "** ***** you ** *** *******."
**********
***** ******** ****, ***'* ********* **** paid *** ~**%-**% ** *********** **** sale ********* ******, **** *** ********* paid *** ** ********** **** *** for ********** *******. ********* ** *** plaintiffs, *** ** **** ********* ****** eliminated "*******" *********** — ***** **** of ********* ** ******* ** **** for **** ******** — ******* *** company ********** ** ****** ******* **** the *****.
***** ** *** ***** ** ******* 2024, *** ***** *******' ******* *** rapidly ****** ******** ***** ****** *** current *** *********. ********* ***** **** ten ***** **********, *** **** *** includes ** *********** **** ****** *** country ******* *** ****, ************* *************** with *** ***********' ********* ******.
*** ***** ********** *** ** *******:
*** **** ** *** ****, *** IPVM's*** ***** **** *** ******* **** Commissions ******.
JCI's **** ********
** ******** ********** *** ****** ** *******, *** **** *** ****** "***** for * ****** ******: ********** **** no *********** *********** ****** ** *** so-called '*******' *********** **** *****."
*** ******* **** **** *** "********** incentive ***** ***** ***** ********** *** suing ******* *** *********" ******** ******* "that *** ***** ************ ****** ** cancel *** ********* ***** ** *** time."
Other ********* ** ***:
- Count * (****** ** ********) fails because the "commissions sought by the Plaintiffs were not yet earned and, based on permitted changes to the plans, cannot be earned in the future."
- Count ** (****** ** *** ******* ******** ** **** ***** *** **** *******) fails "because the actions complained of by Plaintiffs were contemplated by the terms of the historical (and now superseded) plans they seek to enforce."
- Count *** (****** **********) fails because "the parties had a contract."
- Counts **-*** (***** *** ***-***** ******) fail because "the Plaintiffs do not have any entitlement to payment of the 'backlog' incentives" and "unearned commissions do not constitute 'wages' under any of those laws."
"Right ** ******" ******
*** ************ **************** ********************** *********************** ******* **** ******** **** *** 2023 ********* ********* **** ***** *** company *** ****** *** ***** ** any ****.
*** ********, *** ***** *** *******'* FY **** **** ***** ********, *******, and ******* ***** ******* **** *********** stated:
********** *** ***right ** *****, ******, ** ********* the plan at the company’s discretion with or without notice to the participants, and without consultation. [Emphasis Added.]
** **** ******:
** ********, *** ******* ******** *** right **change **** ********* **** for this Plan Year and any subsequent Plan Year. [Emphasis Added.]
*** ***** *** *******'* ****** ******** Core ***** ********* — ******* *********** Summary **** *********** *** ********** ******:
********** *** *** ***** **amend, ******, ** ********* the plan at the company's discretion with or without notice to eligible participants. [Emphasis Added.]
*** **** *** **** ******* **** found ** ****** ********* *****.
"Transfer *** **************" *******
*** ******* *********** "******** *** **************" clauses ***** ******** ***'* **** ********* payment *********. ***** *** *******, *** maintained **** *** ********** **** *** entitled ** *** "*******" *********** ******* the ********** *** *** **** "******."
** ****** ** *** *****:
*** ***** ********** **** **** ******* that *** ********* ******* ** *** due ***** **** ** ******“transfer *** **************.”
“********” ***** **** *** ******* *** been “***% ******,at ***** **% *********, estimated completion date has occurred, and the project manager has marked it for transfer in the JCI Financial system. “Reconciliation” means the process of “adjusting *** ******** ****** ******** (positively or negatively) based **** *** ****** ******* ** *** *******.” [Emphasis Added.]
** ******* ** * ****** **** the ***** *** ******** ** *** brief.
*** ******* **** ********** **** ******** payment ******** ******* **** ******** *********, such ** ***** **** *** ****** HVAC ***** ********, ******* *** ******* Sales ****:
Plaintiffs' **********
************ ** ***'* ******, *** ********** ****** **** *** plan ***** "**** *** *** ***** to '*****, ******, ** ********* ** the *******'* **********," ******* **** ****** that *** ******* **** "*********."
Ambiguity ******
*** ********** ******* ****** **** *** "generic" ******* **** ********* ******* **** did *** ******* ******* *** *** alter *** *********** "**** ***** *** Plaintiffs **** ***** ********* ***** *********** under *** ********" ** ** ** more ******** ******* ** **** **** hadn't *** **** *********.
**** ******** ********** *** ****** "*********," courts ********* ******** **** ******* *** drafting *****.
*******, *** ******* ****** **** *** "milestones" ** *** ******* ******** "**** completely *** ******** ****** *** ******* of *********."
Grandfathering *********
***** ** ******, *** ********* ********* "for *******" ********* "************** **********" **** promised ** ******** *** ********** ******* schedule *** ******** ***** ** **** sales **** ***** "** **** ** accordance **** *** **** ** *** time ** *******," ********* ** *** plaintiffs.
***** ********** ****** ******:
*** ************** ********* ******** **** ***** previously ******* ********* ***** *** **** incentives ***** *** *** ***** ****, *********** ***** ******** ** “** **** ** ********** **** *** **** in effect at the time of booking. (***, *.*., *** **. **-* ** **; *** **. **-* ** **.) *** ********* **** *** Plaintiffs confidence that JCI would hold up its end of their bargain, *** **** **** ***** ** ******* ****** ** ********** **** **** *** ****** *** ****** ** ***** *** *****. [******** *****.]
Suggested "***** ****"
*** ********** ****** **** *** "********* to **** *** *******" ** *** sales ****' **** ****, ****** ** reported * "****** *******" ** $** billion ** ******** ******* ** *** end ** ** ****.
***** ** * ********** **** ** 6.5% ** *** ***** ****** ** the ****** *******, ***** **** ** JCI ***** ** **** **** **** $230 ******* ** ***** *****. *** plaintiffs ******* **** *** ********** ******, ending *** ******* ********, ***** ** a "***** ****." ***** ****** ******:
***** **********do *** *** **** *** **** ******* ****** ***’* ********, it is certainly plausible at this stage that the company simply engaged in a money grab or acted for some other bad faith reason. [Emphasis Added.]
********* ** *** ******, *** ********** said:
*** ******** ** **** *** ******* of “********” *******—********** *********** ** ********* that *** ********** **** *** ***** requirement ****** ***** ***** ** ****—and ****** **** *** ***** *** ******. [Emphasis Added.]
Status ** ****
*** **** *** ********** **** ***** their ********** *** *** *** ******* to ***** *********, *** ***** *** rule ** *** **** ** *** dismissal ******. ** **** ******** ** monitor *** **** *** ************.
*** *** **** **** **** ********** decisions. **** ** ** *** *** most *********** *** ****'** **** ** the ****/*** ***.
* ********** ** *** ******* ***** to **** *********** *** ****** ***********, but ** **** **** **** ** on *** ***** ** ************ ** many ******. *** ************ ** ******** compensation *****, ************, *** ***** ***** staff ** ********** ***** ********* ******** unilaterally, ******* *********** ************* *********. **********, this *** ** ***'* ******* *******.
******** **** *** *** ******* ****** the ***** ** *** **** (*** saying **** ** *******, *** ***'* assume *** *** **** ** **********), I ***'* *** *** ** ***** be ******* ** ********** ** ** such ****** **** **** ***** ****. Maybe ***** *** ****** ******* *********** who **** **** **** ***** ***** or ****** ******** **** *** **** accept **, *** ** ***** ****, to **, ***** * **** ** antagonize **** *** ***** **** ** such * ******.