Legal Question in Employment Law in California
Employer Compensation payment time frames
I was recently let go from a sales job from a CA' company. They have agreeed to pay all commissions owed me however they are very poor at tracking commissions and usually did not pay until they received payment. When working and receiving a salary I had no problem with their structure although having to constantly keep an eye on them becuase their sales tracking is so poor. Currently they owe me about 75K in commissions and I have been told by a non legal person that there is a set time frame that they have to settle with me under CA law. Is this a true statement and if so can you tell me what that tome frame is?
4 Answers from Attorneys
Re: Employer Compensation payment time frames
Actually, it depends on the type of agreement you have with the employer. Was it in writing or oral? Generally, there is a limit of one year on oral contracts and 4 years on written ones.
If you would like some assistance, perhaps a letter on your behalf, please feel free to contact our office at 626-578-0708.
Some basic employment rules and regulations are available on our website at www.RulesofEmployment.com.
Scott
Re: Employer Compensation payment time frames
If it were salaried wages, they have only days to pay. But, with commissions, the money is payable in normal course of business, just as you always were. If it normally took months, then months it can be. If they decide not to pay, then contact me to discuss your rights to collect.
Re: Employer Compensation payment time frames
According to the Labor Code, since commissions are considered wages, nonpayment would entitle you to to treble (triple) damages, statutory damages up to 30 days, plus attorney's fees if successful in a lawsuit.
Re: Employer Compensation payment time frames
Mr. Nelson is correct--commissions are paid when they are collected. Ordinarily, you have to be paid all your wages, including vacation pay, on the date of termination.
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