IBM Tech Salesman’s Capped-Commission Suit Revived on Appeal (1)

An International Business Machines Corp. tech salesman has enough evidence to go to trial on claims that the company unlawfully capped his commissions after repeatedly telling him that his earning potential was limitless, the Fourth Circuit ruled Thursday.

A jury should decide whether Justin Fessler reasonably relied on IBM PowerPoint presentations informing him that his commissions were uncapped, the U.S. Court of Appeals for the Fourth Circuit held, reversing the Eastern District of Virginia’s decision to dismiss the suit.

Although Fessler’s incentive plan letters warned that IBM could adjust his compensation for various reasons, those disclaimers don’t necessarily prove that ...