Legal Question in Employment Law in California
Failure to pay sales commission
I am scheduled to received a sales commission for Quarter 2 Sales at the end of July. (30 days after the quarter ends)
If I resign prior to receiving this, and the company chooses not to pay my commission do I have any legal recourse?
I do have a commission schedule in writing however there is a clause in there stating ''This plan may be modified at any time by the senior management team''.
2 Answers from Attorneys
Re: Failure to pay sales commission
Commissions are paid according the agreement entered into between the employer and employee. Therefore, the terms of the written agreement will control. Those terms normally can be changed or modified, upon notice, but not retroactively.
Whether you are eligible for payment of commissions already earned depends on many factors, including what the contract says, the custom and practice of the industry, and whether anything remains to be done on your accounts after you have left.
You should probably have an attorney near you review the contract for a better analysis. Above all, keep necessary records to enable you to do an accounting, in case the company refuses to pay. All too often, employees have inadequate records to enable them to make a credible claim.
Re: Failure to pay sales commission
If you earned the commission as an employee, you are entitled to receive it, despite your employment status at that time.