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Infolawyer
Infolawyer, Lawyer
Category: Employment Law
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Experience:  Licensed attorney helping employers and employees.
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I have a dispute with my now former employer regarding commissions.

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I have a dispute with my now former employer regarding commissions. It's a dispute that goes back to my hiring. Commissions are paid according to the following language:

"Base commissions are paid on all gross revenue generated, payable on the last payday following the month the revenue is collected. From the date of execution of this agreement thru December 31, 2013, this commission shall be calculated on all booked revenue collected during the calendar year ending December 31, 2013"

My question is, according to this language, when is a commission considered "earned"? Also, if the terms of the agreement provide for payment terms (say quarterly), is my employer to pay me all commissions "earned" once payment is received, or am I to receive the agreed upon percentage based on the actual amount received?

I live in Texas.

Daniel :

Hello,

Daniel :

The commission is based on amount collected

Daniel :

as that word is used following generated.

Daniel :

so it is the lower of receivables versus collections

Daniel :

it is therefore earned, when generated, but paid when collected

Daniel :

so if not collected, it is not part of the commission payout

Daniel :

Please let me know if that is clear and you are satisfied with the answer.

Customer:

So by way of example:

Customer:

If I sold a deal worth 10,000 and was to be paid 10%, I would earn a $1000 commission. Then if the client paid in quarterly installments, I would be paid my earned commission of $250 on their quarterly installment. Is that right?

Daniel :

precisely

Daniel :

it becomes an issue of timing only

Daniel :

paid on receipt

Daniel :

wishing you the best.

Customer:

Thank you.

Daniel :

very welcome

Daniel :

Have a nice weekend

Daniel :

Kindly click on an excellent rating

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