California Employment Law
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I have an inside sales rep who has made multiple contacts and negotiations with the client. All emails are documented and calls logged on an excel spreadsheet. I cannot say for sure that his efforts were the deciding factor in the sale.
We are a group of companies under the same owners. This guy was a w-2 employee for another company in the group selling similar products. The customer would not purchase products from the other company because their pricing was too high. I know for a fact that the customer purchased from us because of our ability to offer lower prices, and continues to purchase from us because of the lower prices regardless of the sales rep.
To be honest, I messed up and offered the wrong commission ($1000) and was later told that the original amount was too high and only $375 could be paid out.
If our records showing the customer had been contacted by our w-2 sales reps, and the deciding factor to buy was based on price, does that mean the guy threatening to sue us falls outside of the procuring cause doctrine? If not, would my mistake make the company liable for payment, or myself in small claims court?
I want to pay the guy, but I want to pay him the right amount.
I get the discrediting of any sales person, but I feel these circumstances are a bit different.
One company supplies the other with product. My company happens to be the supplier which allows us to discount.
The customer has stated that the reason for his decision was based on pricing, which is why the guy threatening to sue did not invoice through the other company as it is the exact same product, not just a similar product. Like buying a can of coke directly from coca cola vs. walmart.
Would this make a difference?