An employee has resigned from the company. He is a commissioned sales executive. His commission is calculated based on quarter end results that are typically calculated and paid out one month after close of the books.

Is it legal to pay out his final commission post his departure on the same quarter end payout schedule?

Thanks!

For final pay purposes commissions are due when they can be calculated.
Resigned with 72hrs or more = due on last day
Resigned without notice = due within 72hrs

Which means, basically, you should calculate his commissions as soon as is possible and pay it as soon as it is determined.

Thanks so much. so to just be clear... we are paying out all commissions through May (which are able to be calculated) in his final check, we will pay out the June commission due after the reconciliation is done in accounting which will be by end of July. this sounds like it is in alignment with what is allowed under the law.

Thanks again!

That's possibly more than you have to do by law, but it's the right thing to do, if it can be done. I applaud you for going that route.

Is it 72 hours including the weekend? We had an employee called in and quit Wednesday at 11am. When does her check need to be ready. Thanks.

Is it 72 hours including the weekend? We had an employee called in and quit Wednesday at 11am. When does her check need to be ready. Thanks.

It is my understanding that it includes weekends, so sat at 1100.

Mine too, Joe916. I would think that, otherwise, the law would have said something like "3 business days". And it doesn't.

I concur. It has always been my understanding that it's 72 hours by the clock, not the business calendar.