Legal Question in Employment Law in California

Witholding Commissions

I was recently terminated in as part of a company Reduction in Force. I am a sales exec, and paid predominantly on commission.

I was expecting my final severance check tomorrow, which includes uppaid expenses, a two-week severance, plus several thousand dollars in commissions.

I have just been notified that my company is going to hold on to the commissions due, for a period of 6 months, just in caes any of these deals are not paid in full by their customers. I understand that while I was employed, the company could 'back out' any deals that the company didn't receive payment on, but can they hold on to my commission check for 6 months in case this happens while I am terminated ?

It is a cruel blow to terminate me, and then not pay me on deals that I have closed during the last quarter, and I need to know if it is legal.

Thanks


Asked on 10/30/01, 6:55 pm

1 Answer from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Witholding Commissions

If it has not been the practice to withhold commissions in the past, if the withhold commisions now, you may have a breach of contract action based upon the implied terms established during the course of performance of the contract. Please call me directly at (619) 222-3504.

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Answered on 11/02/01, 6:45 pm


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