Legal Question in Employment Law in California
Commission to employee who quit
We had an employee who quit and
her last day was June 6th. She was
paid salary and commission. Commission is calculated by what existing order ship during each month and then commission is paid on the 15th of the next month. She was paid her salary (which is paid weekly) for the June 2-6 work week, her May Commission and her commission for the orders shipped during the first week of June. She is demanding to be paid for any order scheduled and that she has entered. We tried to expain that commission is ''earned'' when orders ship and calculated monthly, just as salary is ''earned'' when you work. She quit, which means she is no longer entitled to
compensation after her final day of work. She is threatening the labor board. Please advise if our position is correct.
3 Answers from Attorneys
Re: Commission to employee who quit
Hello. If your employee finished performing the duties with regard to a project that lead to generation of transaction that would have entitled her to commissions, then she is entitled to that commission regardless of when she quit.
In other words, if I make a sale today, quit next week and you get the money for that sale out of which I should be receiving commission two months from now, I am still entitled to commission.
Thanks,
Arkady
Re: Commission to employee who quit
As an employer you consult an attorney in person for such a matter. Your commission schedule and supporting documentation should be reviewed as well to provide you with the right answer.
Re: Commission to employee who quit
The very first time I tried a case before the labor board, I represented an employee under nearly identical circumstances. In that case, the commission was due upon payment by the customer. The employer tried to say that my client was not entitled to commissions on orders when the customer paid after the voluntary termination. My client won.
The efforts to secure the sale/shipment took place while she was employed by you. She is entitled to be paid for her work and you would most likely lose before the labor board. You might even be hit with interest and penalties.
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