Legal Question in Employment Law in California
Termination -- They Kept Commission
I was terminated and they still owe me over $10,000 in commission. Reason for termination - they said I defrauded the company commission policy, which is NOT true. The new general manager said he would do complete investigation on my sales before they would send me a commission check. Normal commission pay day was 2 weeks ago and I have not received any reconcilation nor payment. Are they required to pay commissions to terminated employee on normal commission day or do they have the right to withhold commissions to an undetermined date...supposedly when they finish their investigation?
Thank you!
1 Answer from Attorneys
Re: Termination -- They Kept Commission
California's labor code requires employers to pay their employees promptly at the time of termination. However, when an employee earns wages in the form of commissions, the employer can pay this commission whenever it would normally be paid had the employee not been terminated. Provided the employer's suspicions are in good faith, even if not correct, latitude would be afforded the employer to complete its investigation before it pays commissions.
Because there is a termination with a sizable amount of money owing, it would be prudent for you to contact an employee rights attorney to evaluate your employment, termination, and any commission issues that may exist. An attorney may also be able to expedite the company's investigation through correspondence or other means.
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