Legal Question in Employment Law in California
Stolen Accounts
I am an account manager (tax status 1099)for 2 years. There are 4 other account managers and we are each assigned territories to open new accounts and maintain existing ones. until 1 month ago, I was the only account manager still active with the company. My boss gave me all the accounts of a previous account manager and since the new people were hired I have not been getting paid for any of the sales that were in this account base. It comes to thousands of dollars in commissions. consequently my bills are delinquent and I see no change to repay me for all the months I spent on those accounts. Can I sue for loss of wages, not to mention the mental anquish my famaily and I suffer?
2 Answers from Attorneys
Re: Stolen Accounts
Mental anguish, NO. But, if they refuse to pay what is actually due, you can bring suit or a claim with the labor commissioner. It may pay you to have an attorney review your case, and make a demand on the company. If he can settle it quickly, you're better off than spending time and money in legal action. Contact me if interest in doing this right.
Re: Stolen Accounts
First, your statement that your tax status is that of a 1099, indicates that you are treated as an independent contractor, not an employee. While it is possible you may truly be an indepedent sales agent, the laws are very strict in this area and there is a good chance you may have been misclassified. If so, the employer may have violated state and federal laws. If you are properly treated as an independent contractor, you cannot go to the labor commissioner, you can only sue in court for unpaid commissions.
Second, commissions are subject to the terms of a contractual agreement. That is the most important factor to consider in determining whether you are owed commissions. If the contract is vague or does not even exist, past practice and policy is considered, as well as the degree of involvement you had in procuring the sale. The more involvement you had with the account, the more likely you are entitled to the commission.
You should prepare a detailed breakdown of all the accounts you are claiming and meet with an experienced labor law attorney in your area to review your claims. Your options can then be mapped out for you to determine the best course of action for you to take.