IBM California Sales Commission Class Lawsuit Moves Forward

IBM lost its bid to dismiss a claim it engaged in unlawful business practices related to how it structured its commissions for sales representatives, as a federal court in San Francisco found sufficient allegations for that part of a potential class action.

IBM periodically gave sales reps “incentive plan letters” outlining sales targets and commission rates, according to plaintiff Mark Comin. The IPLs had disclaimers stating that they weren’t an express or implied contract, or a promise to pay commissions, he says.

Comin alleges that IBM engaged in a bait-and-switch scheme in which it incentivized sales reps with the promise ...