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IBM Commission Lawsuits

IBM’s “bait and switch” tactics are just one of many claims made against the company in IBM Commission Lawsuits. There are many other claims as well, including age discrimination and unenforceable contracts. Let’s look at some of the most common ones. What are they and why should we care? Here are some common examples. You might even be able to file a lawsuit against IBM for compensation and mistreatment.

IBM’s “bait and switch” tactics

Several lawsuits have been filed against IBM over its “bait and switch” commission practices. Among these are cases where IBM promised sales representatives that their commissions were unlimited, but then changed the rules after the fact. In one of these cases, IBM allegedly capped the payments at $296,568 and then told salespeople that they had not earned all of the money they were due.

The lawsuits claim that IBM fraudulently shifted billions of dollars from one area to another. The company fraudulently shifted revenues from its mainframe business to its Strategic Imperatives business and CAMSS business. The company has since been accused of a wide variety of unethical business practices. The company also claims to have violated the Fair Labor Standards Act through discriminatory layoffs and mishandling of its sales commission.

In another case, a district court rejected the relator’s False Claims Act lawsuit against the company. The plaintiff alleged that IBM falsified audit findings to compel a $91 million payment under a new contract. While the IRS was aware of the allegations and did not take action, the IRS was still paying IBM under the contract even after the allegation surfaced.

Age discrimination

A series of age discrimination lawsuits against IBM has surfaced in recent months. A Washington resident sued the company for allegedly targeting older workers. Between 2013 and 2018, IBM laid off thousands of employees, the majority of whom were over 40. A letter from the Equal Employment Opportunity Commission (EEOC) to ex-IBM workers claims there is enough evidence to file a charge against the company for age discrimination. It could affect over 6,000 former employees. The EEOC also received corroborating testimony.

An age discrimination lawsuit against IBM can get you compensation in many different ways. A settlement based on these claims could include lost wages from the date of termination, missed income due to hours cut, and punitive damages. However, filing a lawsuit for discrimination against IBM in this manner may require more proof and therefore a smaller settlement. Regardless, an attorney can help you pursue a successful age discrimination lawsuit against IBM.

Many former IBM employees have filed age discrimination lawsuits against the company. These employees allege that they were terminated from their jobs because of their age. In addition to filing individual suits, many of these workers have been denied access to evidence. Shannon Liss-Riordan, who represents hundreds of IBM employees, is trying to convince the court to change the rules that govern the arbitration. A recent ruling in one of these cases also cited new evidence.

Unenforceable contract

In Jensen v. International Business Machines, IBM argued that its “uncapped” commission program did not have a contract. Although it has a right to cap commissions, the program does not require the compensation of all salespeople. Its 1% commission rate is not comparable to some of the rates offered to salespeople who do not exceed the 200% quota. And, the fact that IBM has different commission rates in different markets does not necessarily mean that commissions are capped.

IBM’s incentive plan letter isn’t enforceable under California law, which requires that commission-paid employees enter into written contracts. This contract should spell out what percentage the company will pay the salesperson. IBM did not provide a contract in this case, but it did give salespeople the Incentive Plan Letter, which explicitly states that it has the right to cap commissions however it sees fit. Because the sales incentive payments will differ, the court concluded that the program did not create an enforceable contract.

While the IPLs may be a legally enforceable contract, IBM also asserts that the IPLs themselves were not. They lacked express language requiring IBM to give commissions, and they included disclaimers similar to Fessler’s IPL. Hence, the IPL was not enforceable. The IPLs were void as a result of the disclaimers in the IBM Commission lawsuit.


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