Another
Johnson Controls employee has filed a breach of contract lawsuit against the company following the introduction of a new sales incentive plan last November.
The new plan eradicated a system of backlog payments that was previously due to Johnson Controls salespeople under a previous version of the plan.
Will Goodwin is a current Johnson Controls employee who sells equipment and projects throughout Colorado. In the newly filed lawsuit, Goodwin alleges he is owed a backlog of $156,673.
The lawsuit alleges Johnson Controls is in violation of the Colorado Wage Act. If Goodwin wins his case, he could be awarded an amount equal to 200% of the wages due to him.
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.”
Johnson Controls has also been named in several other lawsuits related to its new sales plan. Complaints have been filed in
Wisconsin,
Michigan and
New York. The original lawsuit filed in Wisconsin includes more than 20 salespeople. The company is attempting to have the Wisconsin lawsuit thrown out, most recently filing a brief in support of its own motion to dismiss the case.
The brief argues that the salespeople who have taken legal action against Johnson Controls are incorrectly claiming the backlog payments they seek to recover were ever earned. The company also points to the fact that in past versions of its sales incentive plans, it states it has the right to change or alter the plan at any time.
"Not only is there no breach of contract where JCI followed its terms, but similarly there can be no breach of an implied duty of good faith when a party utilizes a right expressed in the contract," according to the brief.
Legal counsel on behalf of the company argues the "plain language" found in the 2023 contract informed all salespeople that every provision of an existing or a prior plan could be terminated. The company further argues that there cannot be a breach of duty or good faith when a party exercises a right expressed in a contract.
"Plaintiffs seem to equate the implied duty of good faith with a requirement that each contracting party be nice to the other," reads the memo.
A final decision has not been made as to whether the Wisconsin lawsuit will be dismissed or not.
