Legal Question in Employment Law in California

Re: Leaving a job and vacation/commission

Whether a forfeiture of commissions is lawful depends on many things, including when the commissions were earned, what remained to be done to complete the transaction, the terms of the commission contract itself, how past practice has worked, and the fairness of the commission agreement iteself, both in substantive terms and how the employer imposed them on the employee.

Generally, courts disfavor forfeiture provisions but they have been upheld in limited circumstances. You have not provided sufficient facts to offer an opinion on your friend's case. You should have her consult with an attorney who will need to inquire about the specific issues indicated above.

Re: Leaving a job and vacation/commission

Your friend should consult an attorney as there are several issues that may impact on what she is owed. If she is an outside sales person and did everything necessary to entitle her to the commission and would be paid except for having given notice, she will most likely have a right to the commissions she earned. If there is a possibility of chargebacks the employer may be able to justify a delay in payment of some of the commissions but would still be required to pay what was due after a reasonable period of time. If she was an inside sales person and worked overtime she may be entitled to additional compensation if the employer failed to pay overtime. Exceptions may apply so you should consult with counsel to determine your specific rights. If you want to discuss your case further, feel free to contact me.