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An independent sales rep sold an annual advertising contact for our magazine. A week later he informed us he no longer will be selling advertising for us. The advertiser pays monthly and another rep services the account. Do we have to continue to pay monthly commission on the ad to the old rep? We are located in Nevada.
Optional Information: State/Country relating to question: Nevada
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If a worker has done everything needed to earn a commission the the employer must continue to pay the commission.
But, the issue would turn on the language continated in the compensation agreement.
Even after he quits and was a 1099. We still have to service the account.
If the employer can show that servicing is a condition of earning the commission then it would not be owed to the old representative.
Does that make sense?
So, you would need to look at the compensation agreement.
There was no agreement, just a verbal. You sell you service and you get paid.
If servicing was a requirement for a commission, then it would not be owed if the servicing by the employee ended due to termination of employment.
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Thanks I think that covers it. I will post a smiley face
thank you
Experience: Wide experience in consumer rights law.