Legal Question in Employment Law in Washington
Residual Commissions
I resigned from a position as an independent contractor with an insurance broker about 4 months ago. All insurance sales I made were written under my agent number with only my signature. The company I was selling for did not appear anywhere on any of these deals. Now he is threatening to sue me for residual income from these sales which come in each year. i was never paid any compensation or expense reimbursement and had an agreement while working there to give him a percentage of each commission I received on these sales. He is also claiming that me retaining the residuals is criminal theft.
1 Answer from Attorneys
Re: Residual Commissions
Terms of your contract would dictate whether you have to share the residual income or not. Check the contract, or have an attorney look it over with you if you have any question about what it calls for.