Legal Question in Employment Law in California
Laws of Commissioned Sales Employees
I am an outside sales/account manager for a medium sized corporation headquartered in Illinois. I currently receive a base salary, company car and commission based on sales volume. My question is "Are there any labor laws pertaining to the time period in which a company must pay commissions to its sales force/commissioned employees in a timely manner for sales and orders that have been booked, manufactured, shipped, delivered, installed, and invoiced to the customer?" Currently, my company is holding its sales force hostage on commissions by with-holding 30% to 50% of the commission due on sold orders for periods of 3 - 9 months. Their reasoning is they want us to help collect full payment from the customer when more than 80% of the time the customer won't pay due to bad service or faulty equipment which is beyond the control of any sales rep. This is the first year the company has tried this approach and it is causing employees to leave the company. Do we have a legitmate case on inappropriate compensation terms?
1 Answer from Attorneys
Re: Laws of Commissioned Sales Employees
Check with the CA Div. of Labor Sttandards Enforcement.