A motion to dismiss a Wisconsin class action complaint related to
Johnson Controls’ new sales incentive plan has been filed by the company’s legal counsel.
The motion to dismiss, filed last week, leaves the case in a state of limbo until a judge decides whether to accept the case.
The
original lawsuit, filed in the Eastern District of Wisconsin, alleges Johnson Controls' new sales incentive plan, introduced last November, eradicated a system of backlog payments that was previously due to salespeople under a previous version of the plan. Over 20 salespeople have joined the Wisconsin lawsuit.
In a declaration submitted by representatives of the company, Johnson Controls argues its incentive plan is “non-contractual and discretionary in nature.”
The company reserves the right to terminate or amend any of the terms or conditions within the incentive plan, including incentive targets, individual employee payments and program eligibility, at any time.
"This action fails for a simple reason: Plaintiffs have no enforceable contractual rights to the so-called 'backlog' commissions they claim," according to a court brief filed by attorneys representing Johnson Controls. "Under the clear terms of the incentive plans on which they base their claims, they have not earned the commissions and would only earn them after a series of contingencies occurred, most importantly, when the project is completed, and the customer has fully paid."
Several Johnson Controls salespeople in
Michigan and
New York have also filed lawsuits against the company.
In a previously released statement regarding the legal challenges to its new incentive plan, Johnson Controls said it routinely assesses its practices to "best support" the growth and achievements of its employees.
“We modified our sales incentive program to better align with our company strategy to deliver smart, healthy and more sustainable environments for our customers," according to the statement. "We will continue to assist our sales organization to ensure a seamless transition to our revised competitive model.”
