Legal Question in Business Law in Pennsylvania

Is a verbal employment agreement binding?

My husband accepted a new job last July. Salary was quite a bit lower than his previous job, but the new employer told him that he would be paid commission on top of his salary.

My husband was hired to install computers and internet-related equipment. He was told that he would receive 10% of the billable amount that his company charged the customer.

For example, if his company charged $75 per hour for him to install the equipment, my husband would receive an additional $7.50 per hour on top of his salary. Unfortunately, my husband didn't get this agreement in writing.

After working for about 4 months on these billable jobs, my husband still had not received any commission. When he asked about it, he was told that the customer had not yet paid their invoices, and that he would receive commission when the invoices were paid.

It's been 10 months and he has not received any commission. The company will not tell my husband if the invoices have been paid, and they have ''forgotten'' the verbal agreement that promised the commission. Can the company be held to the verbal agreement that was made to my husband when he was hired?


Asked on 4/12/02, 1:17 pm

1 Answer from Attorneys
J. Bryan Tuk Mandracchia & Modesti, LLC

Re: Is a verbal employment agreement binding?

Generally, yes, oral agreements can be binding. In your case, you do have recourse against the employer under the Pennsylvania Wage Collection and Payment Law. One things that would strengthen your husband's case would be if this promise was written somewhere (in a letter or memo, etc), or if your husband actually received a commission check at some point. These facts are not clear from your note.

If you would be interested in talking about this further, please call me at (215) 239-6026.

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Answered on 4/12/02, 1:27 pm


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