Legal Question in Employment Law in Massachusetts

Commissions -- What do I have to pay when employee quits?

I own a recruiting business. I had an employee work for me from Jan 5 through April 17. She quit on the 19th (a Monday), and left that day. She did want to sign a non-compete or contract when she started working for me. Based on a verbal agreement, I was paying her 35% commission on candidates she recruited and placed, with payment on the start date of the candidate. For cash flow purposes, I offered her a ''draw against commissions'' of $600 per week. She was paid through the 17th of April, which was her last day of work.

She had three candidates due to start AFTER her last day of work, and they have all started. My plan was to pay her the remaining commissions after the candidates completed their 90-day guarantee periods (approximately July 12). However, she just served me with a letter suing me for unpaid wages. I actually thought I was being generous ---- after all, she had left on her own with no notice, had no employment contract, and went to work for another recruiting company. I paid her for all the time she worked and all the candidates who started work during her employment.

What is my legal obligation under MA law?


Asked on 5/21/04, 8:20 pm

1 Answer from Attorneys
Nance Lyons Law Office of Nance Lyons

Re: Commissions -- What do I have to pay when employee quits?

A non-compete is absolutely essential in your business. Recruiters are always leaving after you trained them, and taking clients with them.If applicant won't agree to non-compete, don't hire. If "suit" came from Attorney General's office, call them and tell them she will be paid if placed clients remain in position because you fear that knowing she was quitting, she may have placed inappropriate candidates. If small claims court, judge may side with you. Good luck.

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Answered on 5/24/04, 11:31 am


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