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Delta-Lawyer
Delta-Lawyer, Lawyer
Category: Employment Law
Satisfied Customers: 3546
Experience:  In-House Counsel & Litigator
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I'm a commisiomed Sales Rep. My company has several

Customer Question

I'm a commisiomed Sales Rep. My company has several different compensation & commission plans depending on what Department your in within the company. Currently I get paid commissions after our customer have paid there invoice in full. I'm being told that after six months that the company will not pay commissions that are actually paid after six months from the invoice date. Is that legal? I believe that they should pay me regardless of when the invoice is actually paid.
Submitted: 10 months ago.
Category: Employment Law
Expert:  Delta-Lawyer replied 10 months ago.

I hope this message finds you well, present circumstances excluded. I am a licensed attorney with over a dozen years of employment law experience. It is a pleasure to assist you today.

Unfortunately, this is legal as long as the employer informs the sales rep of this arrangement at the time their commission structure is set in place. Many times, this type of arrangement, as you can imagine, is in the fine print on the commission contract.

That said, as amazing as it is, this is a legal practice as long as the employer can articulate that this is their policy and that the employee was informed that this was the policy (this can be through the contract or by reference to the employee handbook).

I wish I had better news for you under the circumstances.

Let me know if you have any other questions or concerns. Please also rate my answer positively (THREE OR MORE STARS) on the ratings bar on your end so I can receive credit for my response from the site.

Thank you and Best Wishes!

Customer: replied 10 months ago.
We have nothing in writing. No contract, just verbally what they have said.
Customer: replied 10 months ago.
Also, no written commission structure plan is in place.
Expert:  Delta-Lawyer replied 10 months ago.

With that being the case, make sure you look through the company literature as well (employment handbook and policy and procedure manual). If there is nothing in that documentation, and you were told this arrangement after you had started work seeking commissions, then you have a very good argument that the commissions are legally yours at the point they are available...whether or not that is 6 months out.

That is good news for you!

Let me know if you have any other questions. Please also rate my answer positively. Thanks!

Expert:  Delta-Lawyer replied 10 months ago.

Did you have any other questions or concerns?

Expert:  Delta-Lawyer replied 10 months ago.

Just checking to see if you have any other questions or comments. I want to make sure you are as comfortable as possible moving forward. Thank you.