Legal Question in Employment Law in Florida
Commission Only
Can a company legally keep commission for a commission only employee when they leave the company. This is a Florida Travel Agency--that has refused to pay multiple employees the commission they earned--the contract they signed said the funds would not be paid should they leave--is this legal?
3 Answers from Attorneys
Re: Commission Only
Commissions are generally viewed as earned upon sale and payable upon receipt by the employer. There is a Florida statute which indicates that if there is no written agreement on when commissions are paid, they must be paid within 30 days of the employee's termination.
Post-termination commissions should be paid to an employee who has earned them unless there is a specific agreement indicating that they will be retained by the company.
Re: Commission Only
Yes-- commissions paid to an employee are based on an agreement- the contract. Therefore, the employee and the employer can set the terms as they choose. In most commission situations, the terms for post-employment pay outs are that the employees forfeit any commissions that are collected after the termination. However, so employers allow employees to still collect if all collections occur before the separation and others just pay no matter what. It all depends on the agreement or the employers pattern and practice.
Re: Commission Only
The contract determines whether commissions can be retained by the company. Based on what you indicate, the company is exercising its contractual right to retain commissions when an employee terminates the employer-employee relationship.