California Employment Law
California Employment Law Questions Answered by Legal Experts
The have paid me nothing at all. I had to go to them 2 months after not receiving any payment on the discounted amount, and they expressed that they didn't feel that they owed me anything. When I sent an email last week, the VP of Finance's response was that given that they discounted the services, he had not been given any direction on how to calculate my commission. I responded with the sales compensation plan verbiage that I sent you and stated that this was all the direction he needed in order to calculate my commission payment.
James,Thank you for your reply. To be candid, I don't believe your position is tenable. This is because your agreement states that "commission payments are made only after fees from the Sales are actually earned, and funds collected," and that this amount is "subject to adjustment" based on oral or written concessions concerning the amount the customer owes.Since the commission is not earned until the customer pays, and since the amount the customer must pay is subject to reduction until they actually tender payment, it would make no logical sense and would be contrary to the express terms of your agreement to require that your employer calculate commissions based on a number that has not yet been finalized.I don't believe the agreement is ambiguous in this respect. I realize that my conclusions are contrary to the position you are hoping to assert, but I trust that you will appreciate my desire to be honest rather than provide you with an inaccurate answer to your question for the sake of providing good news.Again, please feel free to let me know if you have any further concerns. If I have answered your question, I would be very grateful for a positive rating of my service so that I may receive credit for assisting you.Kindest regards.
I appreciate your candid reply. When the plan states "commission payments are made only after fees from the Sales are actually earned, and funds collected," isn't the earning event a separate event from when the customer tenders payment ("earned AND funds collected" in the statement above)? Or are they meant to be one in the same?
Commission rates are determined when a project is booked. If my company delivers a service to a customer and the final margin of such service is less than what was booked, I am always paid a commission on the booked amount. In this same regards, I am not paid a higher commission when our final margin is higher than what was originally anticipated.
I understand that the commission amount can be adjusted to reflect the reduction in amount collected vs. amount invoiced, but how can the rate be adjusted when it the plan states that rates are determined when the project is booked? In this case, I booked this at a 40% margin and our plan states that my commission rate is 4% at such margin.
Got it....thanks for your advice!!!
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