Legal Question in Employment Law in California
Sales commissions
My colleague and I took a job based on a set salary plus a commission of 2% of gross sales (each) paid monthly.
After the first month we were then told that the commission would only be paid after reaching 'break even' - a complete surprise to us since no mention of that criteria was ever made.
After asking what the break even figure would be we were told at first the figure was 24K and then later we were told the figure was 'somewhere between 42K and 48K'.
We never get to see an honest set of monthly overhead or cost of sales figure, so we have no idea what break even is!
Isn't there a California law demanding that we get to see exactly what the break even figure is and that it is calculated based on universally accepted accounting principles and not some half-assed 3rd grade calculator.
2 Answers from Attorneys
Re: Sales commissions
Law? Not really. If the employer isn't paying properly, you can file a complaint with the Labor Commissioner for unpaid comp. If the amount in question is substantial, then consider hiring an attorney to help with the hearings, feel free to contact me if in SoCal. If they retaliate, that is 'illegal' and you can contact me to discuss your rights and remedies.
Re: Sales commissions
The first question is, what are the terms of your employment agreement. Did you and the employer agree that you would receive two percent of gross sales . . . period? Or did you agree that you would get two percent over a certain amount?
If you agreed on two percent, period, and now the employer seeks to make up new terms to your detriment, you probably have a good claim.
We have handled this type of case before. Feel free to contact us for a free initial consultation.
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