Legal Question in Employment Law in California
Commission Payments
Outside sales representative, booked $1.5 million in sales. Recently terminated by my company; am I entitled to the commissions on the deals I closed prior to termination?
The company sales commission plan states commissions are paid upon payment from the client, and are only paid during term of employment.
It is my understanding that commissions must be paid even after termination of employment. [Prudential Insurance v. Fromberg, 240 Cal. App 2d 185 (1966)]
Please advise.
3 Answers from Attorneys
Re: Commission Payments
I am not sure, one would need to read your contract. Generally, the law requires that the worker be paid for completed work.
Re: Commission Payments
You are absolutely right. You should sent them a demand letter.
Re: Commission Payments
Your question raises several questions. However generally, if the employer sets up a commission plan that results in a forfieture of a substantially earned commission, it can be declared void by the Labor COmmissioner or a court and the employee awarded the reasonable value of his or her services. This is a bit complex and requires more information for a complete discussion. Feel free to contact me directly.
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