Legal Question in Employment Law in California
Commission payments requirements after voluntary termination
I am paid straight commission, no base, no benefits commission only.
The employer collects from my customer�s payment in advance. Then the product or service is rendered on a weekly or bi-weekly basis to the customer. (Newspaper Advertising)
An example: Customer pays in advance for 12 weeks of advertising, I sold the account for $10,000.00, and I am to receive 25% commission on the account. or $2,500.00. The employer pays me at 208.00 per week commission for 12 weeks. When I quit this job, is the employer required to pay the entire commission of 2,500? Of if the customer is 1/2 way through the 12-week agreement is the employer required to pay the unpaid balance of that commission.
I want to quit this job.
Question: Is the employer required to pay the entire commissions on these accounts?
Some other things to consider: I have no employment contract, no employment agreement or any other formal documentation outlining employment agreement or status.
I did not even fill out an application for employment with this company. I was hired on a handshake.
2 Answers from Attorneys
Re: Commission payments requirements after voluntary termination
Payment entitlement depends partially upon the company policy. If stated that commission payment ends upon termination, and you are denied full payment of what you claim is owed, you will have to make a claim with the Labor Commissioner for unpaid compensation. If you want to discuss having me represent you at the hearings and trial, contact me.
Re: Commission payments requirements after voluntary termination
Commissions are normally determined by agreement. If you have no agreement with the employer, case law on the subject says that an employee who "procures" the sale for the employer is entitled to the full commission. If nothing else needs to be done to service the client and the deal was consumated before you left the company, you should be entitled to the entire commission.
A letter from a lawyer, or a claim with the California Labor Commissioner are two options you have to go after unpaid commissions.
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