Legal Question in Administrative Law in California

Non payment of comission sale after being layedoff

Iwas layed off and ask my employer for all comm. owed and was told the donot pa untill the sale is paid 7 delivered. I understand at hte time of termination that you are to recieve a ck for all compinsaton owed.. I also asked for a letter or pink slip & was refused the re quest.


Asked on 11/25/08, 10:44 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Non payment of comission sale after being layedoff

The misunderstanding arises over the term "owed." You should be thinking in terms of "earned," not "owed."

Salary and wages are "earned" at the time you perform the work, so when you are terminated, they are due right away.

Commissions are earned according to the events set forth in the commission agreement. You have provided that information - when the sale is "paid and delivered," not when the sale is made.

So, unlike wages or salaries, your commission is not earned until payment and delivery. At the time you were terminated, you had only an expectation of earning that commission.

To comply with the law, the former employer needs to pay you, or be prepared to pay you on demand, within one business day of the date the commission becomes earned by payment and delivery, as you describe in your question. If the customer fails to pay and/or fails to get delivery, you will not be entitled to the commission.

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Answered on 11/25/08, 12:14 pm
Terry A. Nelson Nelson & Lawless

Re: Non payment of comission sale after being layedoff

You understand wrong. Yes, salary and accrued benefits are to be paid upon termination. Commissions MAY be payable at some time, depending upon the company policies; check them. Companies are free to say they don't pay commissions after termination. If you've got commissions actually earned and booked because the customer has paid and the merchandise has been delivered, you have an argument that it must be paid to you, but on the normal payment schedule, not instantly on date of termination. You can always file a claim with the Labor Commissioner if you want to pursue it after they refuse to pay.

There is no obligation to provide you any paperwork. A boot to the rear out the door is quite legal.

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Answered on 11/25/08, 1:11 pm


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