Provided by: Jennifer Kirschenbaum, Esq.
March 15, 2022
I have a new compensation structure I am shifting to. Do I need a new contract?
Thanks in advance.
A compensation change can always be effectuated without a contract change, however, where possible you should get the new comp rate or structure in writing; preferably conforming in form and substance with the original contract. History of performance is always a factor, but if a comp model is going to later be challenged, you will want the arrangement in writing. If an amendment or new contract is not in the cards, at least make sure to document via email.