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Category: Employment Law
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Experience:  Licensed Attorney with 29 yrs. exp in Employment Law
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Hello, I am a full commission packaging sales representative

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Hello, I am a full commission packaging sales representative for my current employer. I receive 8% commission on the overall profit of all my sales after the order has been received and invoiced to my customer. Currently I have over 3 million in total sales on the books, all of which will ship and invoice to the customer before the end of the third quarter of 2013. Some of these customers were given to me when I started with the company and others I brought on myself. In all cases I have managed and grown the sales on my own over the last 3 1/2 years.

My question is regarding commissions due to me in the event I were to quit or be terminated. What are my rights?

I have been in packaging sales for many years but never as a full commission representative. In fact, our company just turned to full commission at the beginning of 2013, and honestly the pay structure seems very loose and not clearly defined. In the month of February I went without a paycheck at all. This happened even though when they rolled out the new pay structure I understood that they would provide us with a draw on future commissions in those situations. It seems like they are writing the rules as they go, and I am very uncomfortable with this for my future.

Thanks!
Hello,

Thank you for the information and your question. If your commission agreement says that your commissions are considered "earned" "...after the order has been received and invoiced to ... customer" then your employer would have to pay you those earned commissions even if you left before the customer has paid. That said, if the commission agreement states that commissions are not earned until the customer receives and pays for the product, then you would not technically have earned those commissions if you leave before the completion of the sale.

Ultimately, if you believe that you are not being paid properly for your commissions, you will want to consider sitting down with a local employment law attorney who handles wage and commission issues and discuss the specifics with them so that they can help you determine if you should file suit.

One last issue that you raised is going without a paycheck. If you are an outside salesperson (not clear to me from the facts) then that would be legal. However, if you are an inside sales person, then your employer must pay you at least minimum wage for all of the hours that you work. So, if that is not the case, you may have a wage claim that you can file with the State labor department.

Please let me know if you need any clarification. I would be glad to assist you further if I can.
Marsha411JD and other Employment Law Specialists are ready to help you
Customer: replied 3 years ago.
Thank you! This helps me know what the first steps need to be. I'd better get a better understanding of my commission agreement.
You're very welcome and if you need to, you can always come back to the question, even after you have left a rating and ask any follow up quesitons that you might have. Best of luck to you.

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