Legal Question in Employment Law in California

stealing sales accounts

I am an account (sales) manager commission only, filing 1099 on my taxes. we are required to work a 40hr week and can use only what the employer authorizes regarding scripts and leads, etc. I have a 3 states territory and all my existing sold accounts regardless of territory remain in my account base. According to my agreement with the employer, my territories and accounts are guaranteed to be protected. Another individual repeatedly disregards this rule and steals accounts I have been working on even those within my assigned territories. I have on several occassions reported this to the CEO. He advised the other employee that he is not authorized to contact any accounts or work in any other account managers territories because they are guaranteed protected, but he continues to do what he wants with blatent disregard for the rules. The CEO gives me the accounts I find out about, but there are other accounts I haven't found out about yet. My credibility with my contacts is severely damaged along with thousands of dollars in lost commissions. I am constantly defending myself when I report it to the CEO, he avoids the issue and complains when I bring the issue up. What are my options?


Asked on 6/22/05, 2:40 am

1 Answer from Attorneys
Patrick Turner Patrick E. Turner Inc. APLC

Re: stealing sales accounts

Your rights and options depend on the relationship you have with the company. Tax filing by way of form 1099 suggests the company may be classifying you as an independent contractor. However, your description of your responsibilities suggests an employee status. After evaluating your status, the next question is whether there is a written or oral agreement regarding your territory, whether that agreement can be changed at will by the company and how the agreement can be enforced. You should consult with an attorney to determine your employment status and rights to commissions.

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Answered on 6/28/05, 4:03 pm


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