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When three employees were hired as sales reps, they each signed an agreement that the company would pay commissions according to a compensation plan, which the company reserved the right to modify. The employees or the company could terminate the agreement without prior notice. The plan stated that failure to meet quotas was grounds for discipline, up to and including discharge. It also provided that sales quotas would be reduced by 15% for employees who reached the age of 55 with 15 years of service, and by another 25% for sales reps who reached the age of 60 with 20 years of service.
Many years later, when the three sales reps met the age and length of service requirements, ...(register to read more)