Legal Question in Employment Law in California

Protection of sales commissions after the sale of the company

A friend of mine works for a major medical equipment firm that has recently been sold. This friend has been working on a multi million dollar deal for over a year, and as of today, because of the sale of the company and the reorganization of the sales territories, no longer has a claim to the commission to that sale, even though they continue to work in the same capacity for the new company. Is there no protection against the ''reorgainization'' of territories in companies? Should this person be protected for this sale's commissions for a certain period of time? This is not just a California company. It is a world wide company.


Asked on 10/31/01, 1:33 am

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Protection of sales commissions after the sale of the company

It really depends on exactly what the deal was between your friend and the company. Generally, a new owner of a company must honor outstanding contracts.

Read more
Answered on 11/02/01, 9:43 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California