How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Joseph Your Own Question
Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
Type Your California Employment Law Question Here...
Joseph is online now
A new question is answered every 9 seconds

What kind of rights do you have if you are a team loan officer

This answer was rated:

What kind of rights do you have if you are a team loan officer and paid a commission on loans that you work on? I have a past team LO who left me at the end of November 2012. She is wanting to be paid for loans that she worked on that didn't close in November but closed in December when she was gone working at a new company. I agreed to pay her a portion of the amount she would normally get but she wants more and is saying she is going to file a claim with the labor board.
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

Unfortunately, the loan officer who is paid on commissions on loans that she worked on, is due the commissions that she was entitled to receive as an employee for the loans that didn't close until December.

This is due to fact that commissioned employees are due all wages earned at the time that they terminate employment. If the wages are based on commissions on deals that have yet to be closed, the employee is due to the amount of the commission immediately after the deal closes.

Unfortunately, it is illegal for an employer to only pay the employee a portion of the amount of the commission since the employee is no longer with the company and is working for a new company.

If you were to do so, you would open yourself up to liability for the unpaid commissions, and a penalty of a day's wages per day the employee has to wait to receive her wages.
Customer: replied 3 years ago.

so even though they didn't finish the work that was due on the deals to get them closed they are still due their full commission split?

Yes, as long as they did the work to 'earn' the commission they would be due their full commission split. However, if you can prove that they did not actually close the deal and therefore didn't 'earn' the commission, that would given you an argument to provide them wih less than their full commission amount.
Joseph and other California Employment Law Specialists are ready to help you

Related California Employment Law Questions