Legal Question in Employment Law in California

I was laid off from my inside sales position and have been asked to sign a separation agreement. I was paid a base salary plus commission. The Commission is payable at the time company receives funds from a tax equity tranche. The Commission Plan states that upon termination commission will be paid according to schedule, but the separation agreement says: �Employee has received all wages and benefits to which employee is entitled and which accrued through the separation date. Except as provided in this agreement, all compensation and benefits to employee shall end on the separation date'. If I sign this does this mean I will not be paid outstanding commission?


Asked on 2/08/12, 10:57 am

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

It could mean they won't pay commissions and if they refuse to do so, you are out of luck if you sign the agreement as written. If the company is saying they will pay you for the commissions you have already earned, the agreement needs to be revised to confirm this and the clause that says you have been paid all wages needs an exception inserted so there is no room for ambiguity. Before you sign the agreement, you should have it reviewed by an attorney.

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Answered on 2/08/12, 11:21 am


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