Legal Question in Employment Law in California
commissions
I had a verbal agreement with my employer, that I would receive commissions on any clients I
brought into the company, for as long as they remained clients. My agreement was to continue, even if I left the company. Our company was a large broker for
medical insurance in California. I have been paid from some clients since 1999, each and every
month. Since I was a tele-marketer, my job was completed, when the client signed the Broker of
Record letter. Five months ago, my employer cut my commissions in half and two weeks ago terminated
me. His reason was lack of production of new clients. When he first cut the commissions, I tried
to work it out, but the company would not budge. He refuses to pay me any more. Since my
commission was always based on work completed, there has never been an expectation of future production''
3 Answers from Attorneys
Re: commissions
Based on your comments, it sound as if you may have a valid claim. While proving the terms of a verbal agreement can be difficult, it is helpful when you have a long history and pattern of dealings between the parties. We have handled these type of cases before, and would be pleased to offer you a free initial consultation.
Re: commissions
Oral contracts regarding commissions are difficult to prove without documentary evidence. Gather evidence of all of the commissions previously paid to you, together with you Broker of Record documents and even bank account statements if you do not have paycheck/commission check stubs. Of interest, are you the only employee who has incurred this or are there others as well? A collective or class action on behalf of multiple workers may also strengthen your case by proving that you are not the only one who's contract was breached.
Re: commissions
If you can prove the agreement for lifetime commissions, then you have grounds for legal action. How do you propose to prove the 'verbal agreement' since it is denied by them? Feel free to contact me for legal help if you think you have any evidence to do so.