Legal Question in Business Law in California
Sales Rep Comission
I have been a sales rep for a company where I have been recieving 2.75% commission.
I was recently fired, over the phone after working for the company for 7 years because I was costing the company too much money (my income was too high).
Now the owner has not compensated me for various accounts that I brought into the company that I have not yet recieved the commission for. He is not releasing the records of the accounts I brought in and the commission I am owed, so I do not know the exact amount. I only know a guesstimate of any where from 50 to 100 thousand dollars.
What are my rights? How do I get the money I am owed? And what are the laws in termination without notice, and without reason. . .?
Thank you
5 Answers from Attorneys
Re: Sales Rep Comission
If you have the right to those commissions in accordance with company policies on payment [which will have to be reviewed to make that determination], then you have a legal claim you can pursue. If successful at trial, you are also entitled to your legal fees. Feel free to contact me if serious about pursuing this, I've been doing employment law for over 20 years.
You are an 'at will' employee that can be fired any time for any reason, unless you have a written contract specifying differently. That has little to do with your commission claim.
Re: Sales Rep Comission
The suggestion that you retain a lawyer to aggressively pursue your employer/principal is a good one.
Your rights will depend on (a) whether you are an employee or an independent contractor, and (b) what the terms of your agreement or contract is with respect to commissions, and with respect to commissions upon termination. If your compensation was based on the generation of sales, and you were fired or terminated while sales generated by you, but not yet consummated, were pending, you normally would be entitled to compensation for those pending sales. But that may depend on whether that issue is covered in your employment agreement or independent sales rep contract.
You should also gather up your agreement or, if your agreement is oral, all evidence of your agreement, including prior commission reports and payments.
Once you hire an attorney, your employer is more likely to be forthcoming with information or, if he is not, once a lawsuit is filed, he will be required to be forthcoming.
Re: Sales Rep Comission
Generally, California is an at-will state, which means you can be fired at any time for no reason or any reason as long as it's not an illegal reason such as discrimination or whistleblowing.
That said, if the commissions are earned -- i.e. the customer has paid its bill, you are entitled to be paid the commissions at termination. You can file a complaint with the State Labor Board or you can file a lawsuit. Hopefully, you have records of your sales. Perhaps the customers could recreate the records for you if the employer is not cooperating, so you'll have a complete file to present to the Labor Board. Good luck!
Re: Sales Rep Comission
I don't agree with attorney Cohen that you should bring the issue of your unpaid commissions to the state labor commissioner. The state is just not going to investigate the employer's books as zealously as can a private attorney. While you should definitely retain an attorney to attempt to recover the earned and unpaid commissions, in all probabability they had the right to fire you without notice and for no reason. I hope you kept good records of your sales and of your entitlement to the commissions.
Re: Sales Rep Comission
Even if you are terminated, you a a right for your commission that you earned. Do you have documentation to support your claim? Please contact our office if you need help in collecting the unpaid commission.
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