Legal Question in Employment Law in California
Payment of Sales Commissions after leaving a company
Can you please advise of any decision in the state of California or legal requirements to pay a sales rep on sales that are invoiced after you leave the company. I resign from a company and a po was issued for a service contract after I resigned. The delay of issuing the contract was due to the customer. At the time of resigning it was agreed I would be paid on the sale. I have documentation of my follow up with the company regarding the status of the company. At no point in time did they advise I would not be paid. The customer will agree that the sale was a result of my efforts. The company is only billing the service contract, support is by a 3rd party who will also agree the sale was a result of my efforts.
2 Answers from Attorneys
Re: Payment of Sales Commissions after leaving a company
If you procured the sale, you may be able to recover the promised commission. There are a number of factors to be considered that are beyond the scope of your question and the ability to respond here.
Re: Payment of Sales Commissions after leaving a company
I represent a lot of manufacturers and sales reps. there are no labor laws covering this issue. it is strictly a matter of contract. for the protection of both sides the Rep. agreement must be carefully drafted to clearly state how commission is calculated in the event of a termination. you need to have someone look at your Rep. agreement.
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