Legal Question in Business Law in New York

what responsibility does a company have to Pay a sales person commission. Contract indicates that company pays commission on paid invoices. I am leaving company, do they have to pay me for sales that have invoiced but not paid yet or for sales that have no been invoiced yet. I have nearly $20k of orders placed with company but have not been paid yet or have not been invvoiced or paid yet


Asked on 9/28/11, 10:32 am

2 Answers from Attorneys

SHAHRIAR KASHANIAN LAW OFFICES OF SHAHRIAR KASHANIAN, ESQ.,

You have to read the terms of contract. Was it oral or written? Normally, if you are dealing with respectful people, they should pay you once payment is made; whether or not you are on current payroll. You should have dictated the terms from the beginning. If you obtain no cooperation, an attorney's letter usually gets their attention; that also depends on the amount of commission and whether it is worth your while to pursue it , should the need arises.

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Answered on 9/28/11, 11:50 am
Michael Markowitz Michael A. Markowitz, PC

I completely disagree with Mr. Kashanian. The company would have to pay you the commission when the money is received for the invoices. Period. Pursuant to NY Labor Law section 191-c, "all earned commissions shall be paid within five business days after termination or within five business days after they become due in the case of earned commissions not due when the contract is terminated." Furthermore, a "principal who fails to comply with the provisions of this section concerning timely payment of all earned commissions shall be liable to the sales representative in a civil action for double damage" and attorney fees.

Mike.

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Answered on 9/28/11, 12:19 pm


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