Legal Question in Employment Law in California

Re: Commissions upon termination

1. You are legally entitled to unpaid commissions and can bring suit to collect them (you should document their verbal agreement that you are owed the money in a diary)

2. Don't sign anything without speaking to a lawyer. Ask whether it would be ok if you consult with an employment law advisor before getting back to them about the 500K or you're fired deal. (Can you generate that amount in 30 days? If not, don't sign it - sounds like a set up and they are upset about your other requests for payment).

3. You are making way too much money for the company to want to risk a wrongful termination lawsuit. Some courts have geld that an employee can sue for wringful termination where, for example, he is fired to prevent the vesting of stock options. It's a breach of the covenant of good faith and fair dealing. Your case could be analogous. I give free consultations and would be happy to meet with you to review the documents and your options at no charge.

Re: Commissions upon termination

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Re: Commissions upon termination

Commsiiions are wages and thus your claim for unpaid wages is the real issue. California law requires that you be paid in full for all wages due at the time you are terminated (within 72 hours if you quit without notice), except that where calculations must be made to figure out the exact sums due the employer will be allowed a reasonable time to make those computations, so long as those amounts known to be due are paid at the time of termination.

As to signing a document regarding work preformance, you may want to have it reviewed by counsel before signing. You are probably an at will employee so the employer can terminate you without cause, unless the reason for the termation is unlawful.

You would be best served to get specific advice for your matter from an experienced employment attorney before making a potentially life altering decision. Feel free to contact me if you wish to discuss this further.

Re: Commissions upon termination

IF your commissions are vested, as indicated, you can collect them through legal action if necessary, regardless of whether you stay or leave employment. The proposed agreement is not 'illegal' and you can be fired for any reason in CA. However, if it could be viewed as 'retaliation' for making the claim on unpaid commissions, it could be illegal, and grounds for a lawsuit if you are fired. If you need help collecting the unpaid commissions, or if you are retaliated against or fired, contact me to discuss how I can help.

Re: Commissions upon termination

You apparently see the writing on the wall. Contact an attorney to review all.

Re: Commissions upon termination

To say that employment is "at will" in California is a misleading incomplete statement of the law. Especially in situations like this, contract law still has meaning and application, despite any "at-will" argument that the defendants might make. To your question:(1) you can sue for your wages and commissions (2) they lied to you; you agreed to work for certain pay and commissions, you did not work elsewhere based on their promises, you worked; they did not pay; you can sue for that - the "causes of action" are intentional misrepresentation and "negligent misrepresentation." You can also sue for punitive damages. (3) Their "requirement" that you sign this letter is illegal retaliation in violation of CA Labor Code Section 98.6. (If they fire you, you also have a claim for wrongful termination "in violation of public policy" as that public policy is set forth in Labor Code Section 98.6 If the facts are as good as you lay them out, my concern in this case would be to make sure that the company is solvent -- that they have money to pay you, if they follow through on what you think they will do, and you end up suing them. Your evidence -- the signed agreement of what they owe, along with this letter that they want you to sign, and the prior practice of doing the same to another employee is compelling. As for tactics, your options, in my view: (1) write a letter of protest to the company, under your own name -- that letter could be written by an attorney. You want to specifically say that you are protesting the action they are taking against you -- that it is retaliatory for your requesting the wages owed you (and you might also say that you intend to consult an attorney, and file a claim with the Labor Commissioner.) The letter would have three purposes -- document your position, dot the i's and cross the t's on your claim for wrongful termination should they fire you; and, if they think you won't get a lawyer, perhaps set them up for the wrongful termination claim. (2) You might have a lawyer write the letter if you are trying to protect your job. (Sometimes they work, sometimes not. I had a client who was fired one week after I sent a back off letter to the employer. His case later settled for a decent sum. . . ) As for signing the letter -- you could sign and write "under protest" next to your signature -- and in your letter write that you signed it only because the last employee who did not sign got fired for not signing -- and you maintain your belief that the only reason they are making you sign it is because they are trying to create a false record of non-performance because you are demanding all wages owed you. (FYI, if they fire you for non-performance, in this situation, you have a likely claim for defamation. Good luck, and feel free to write or call -- 415-522-5200 if you want more info. (I am handling a similar claim where the employer -- EMC Corp. -- was a bit more sophisticated than yours. . . )

Re: Commissions upon termination PART II

answer was cut off: (2) You might have a lawyer write the letter if you are trying to protect your job. (Sometimes they work, sometimes not. I had a client who was fired one week after I sent a back off letter to the employer. His case later settled for a decent sum. . . ) As for signing the letter -- you could sign and write "under protest" next to your signature -- and in your letter write that you signed it only because the last employee who did not sign got fired for not signing -- and you maintain your belief that the only reason they are making you sign it is because they are trying to create a false record of non-performance because you are demanding all wages owed you. (FYI, if they fire you for non-performance, in this situation, you have a likely claim for defamation. Good luck, and feel free to write or call -- 415-522-5200 if you want more info. (I am handling a similar claim where the employer -- EMC Corp. -- was a bit more sophisticated than yours. . . )