Legal Question in Business Law in California

payment of commissions after voluntary termination

I have resigned my position as a salesperson and have booked sales orders that I have not been paid on. The compensation plan that the company had me sign indicates that I am not able to collect commissions until after payment is received.

Does California law supersede this agreement or is their a workaround to this problem?


Asked on 10/27/04, 6:00 pm

2 Answers from Attorneys
Okorie Okorocha California Legal Team

Re: payment of commissions after voluntary termination

I do not know of any law that would alter the contract and require you to be paid immediately, just because you resigned.

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Answered on 10/27/04, 6:38 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: payment of commissions after voluntary termination

Labor Code section 200 defines wages very broadly, and includes commissions in the definition. Arguably at least, commissions should be paid as provided by the following Code sections (see, e.g., 201 and 202) whether or not they are contingent upon ultimate payment by the customer. If the customer has placed a firm order, it is the employer's responsibility to collect, not the order-taker's. So, while my research didn't turn up a decision on point, I am inclined to think the employer must include the commission payment in your final check, 72 hours after your resignation.

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Answered on 10/28/04, 3:39 am


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