HP Salespeople to Receive $25 Million Over Botched Compensation
After a nine-year court battle, Business Insider reports that HP Inc. and Hewlett-Packard Enterprise will together pay $25 million to about 2,000 salespeople.
The salespeople, who are mainly based in California, sued the Hewlett-Packard Company nine years ago before it split into HP Inc. and Hewlett-Packard Enterprise. They claimed that HP’s computer systems weren’t tracking commissions properly and that they weren’t getting paid in a timely manner.
Both HP Inc. and Hewlett-Packard Enterprise agreed to a $25 million settlement in 2017 and both companies agreed to fix their pay-tracking systems. However, it was only this week that a court approved the settlement.
Salespeople’s portion of the settlement will be based on the last 30 days of their salary and other variables, with some getting several thousand dollars and others considerably more, according to an unnamed source.
HP Inc. and Hewlett-Packard Enterprise will also pay almost $1.2 million of the settlement to the State of California Labor and Workforce Development Agency, according to court documents.
According to Business Insider, in 2016, sales managers complained about the situation to then-CEO Meg Whitman, stating that salespeople weren’t being properly paid. After HP split into two companies, Whitman, the one-time CEO of ebay, and who also ran for governor of California at one point, but was defeated, became CEO of Hewlett-Packard Enterprise. She then resigned from that position and is currently CEO of NewTV, a TV startup created by DreamWorks co-founder Jeffrey Katzenberg.