Legal Question in Employment Law in California
Vague Commission Plan- Part 1
In sales for a software start-up
that was recently acquired.
I was the first in sales hired on salary
plus commission.
My commission agreement from CEO
CEO states ''5% on all deals.''
He verbally told me he would pay me
on everything.
Custom in the industry is to pay on
the license, prof services,
maintenance and renewals.
My first commission check was
calculated and then I received two
lump sum payments after that.
Commission payments- no taxes, not
on W-2, no statement. Salary was
outsourced payroll ck.
During the pending due dill of
the sale of the company, the CEO
told me he would pay me a partial
lump payment and the remainder
after the sale of the co. He refused
to put this in writing.
Later that month, he decided that he
wasn't going to pay me anything.
He demanded that I put a
statement in writing that I was
owed no further commissions. I
refused of course.
My email was brought down, recvd
letter from their attorney.
He then claimed through the CFO
that they only pay on ''year one
license'' and not PS, maintenance or
renews. He claimed he verbally told
me this. He never did and knows he
is lying.
Do I have a case to be pd on ps,
main, renews?
1 Answer from Attorneys
Re: Vague Commission Plan- Part 1
I don�t know if you have a case. You need a more in-depth review of the facts surrounding your situation. The state of California favors the payment of earned commissions. If you were entitled to the commissions and you earned the commissions as you have stated then you would have a good case going forward. However, the complexity of your case, of course, is the fact that the agreements appear to be mostly verbal. I suggest you contact an Attorney to discuss in more detail.
Feel Free to contact me if you would like to pursue this matter.
Good Luck!
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