I have worked here in Florida for a company based here in a sales-management role. In that time I have been consistently paid 7% on all sales deals within 30 days of receipt from my customers. I have no written contract in my hand but our accounting manager claims that I 'have a written plan' on file.

Recently, I closed the biggest contract the company has seen in more than 2 years. We received full payment but my employer discovered I was interviewing. I was not paid on the normal time table.

When a confrontation ensued with the CEO he informed me that he was so pleased with my performance and wanted to retain me that he would pay me only 5.25% and but there was an additional 4.75% 'accrued' for me. But I needed to show my future commitment to the company to receive payment. I also confirmed with the accounting manager that she had been informed to accrue funds for me -- not to be released until he permitted.

I resigned.

I feel that I already earned my commission even if I have no written contract. At the least, I should have been paid my 7%. Worse, he was intimidating me and holding back what I fairly earned. Note: This shortfall is 10% of my yearly income, otherwise I would let it go.

Do I have a case and if so, what is my best course of action?

I have worked here in Florida for a company based here in a sales-management role. In that time I have been consistently paid 7% on all sales deals within 30 days of receipt from my customers. I have no written contract in my hand but our accounting manager claims that I 'have a written plan' on file.

Recently, I closed the biggest contract the company has seen in more than 2 years. We received full payment but my employer discovered I was interviewing. I was not paid on the normal time table.

When a confrontation ensued with the CEO he informed me that he was so pleased with my performance and wanted to retain me that he would pay me only 5.25% and but there was an additional 4.75% 'accrued' for me. But I needed to show my future commitment to the company to receive payment. I also confirmed with the accounting manager that she had been informed to accrue funds for me -- not to be released until he permitted.

I resigned.

I feel that I already earned my commission even if I have no written contract. At the least, I should have been paid my 7%. Worse, he was intimidating me and holding back what I fairly earned. Note: This shortfall is 10% of my yearly income, otherwise I would let it go.

Do I have a case and if so, what is my best course of action?
Unfortunately, if you do not have a signed contract on what your commission is, it could be changed, but I am not sure if they can change it without notifying you first, and not on the work done allready. Do you have a copy of the written plan on file? I would contact your local Department of Labor and inquire about this. They will tell you if they could help you or not. I really wish I knew what else to say to you, but I am not an expert on commision based jobs without a valid binding contract.

Unfortunately, there is no "Dept. of Labor" or an equivalent in Florida that addresses wage and hour issues. Especially since this is a commission issue, if you think you have a case, and I'm by no means sure that you do, you would need to file a civil claim. You're free to seek the advice of an attorney to review your commission agreement and discuss whether any verbal "promises" made to you constitute an enforceable contract.

Unfortunately, there is no "Dept. of Labor" or an equivalent in Florida that addresses wage and hour issues. Especially since this is a commission issue, if you think you have a case, and I'm by no means sure that you do, you would need to file a civil claim. You're free to seek the advice of an attorney to review your commission agreement and discuss whether any verbal "promises" made to you constitute an enforceable contract.
I knew there was a state out there without one, but forgot which one. Thanks for the heads up on this one!

I knew there was a state out there without one, but forgot which one. Thanks for the heads up on this one!

turbowray, you may have been thinking of Georgia. :)

turbowray, you may have been thinking of Georgia. :)
Probably so. :) It sounds like from what Patty said, that there is not one in Florida, or am I reading it wrong. There is one somewhere, where the funding was cut so they were not helping people, it was sad to read about.

Turbowray, the funding cut was here in Maryland. They started taking claims again the first of August.

I have worked here in Florida for a company based here in a sales-management role. In that time I have been consistently paid 7% on all sales deals within 30 days of receipt from my customers. I have no written contract in my hand but our accounting manager claims that I 'have a written plan' on file.

What does "written plan on file" mean? Does it include a specific designation for calculating commissions?

Recently, I closed the biggest contract the company has seen in more than 2 years. We received full payment but my employer discovered I was interviewing. I was not paid on the normal time table.

What does "normal time table" mean? Does the company have a written policy or plan?

When a confrontation ensued with the CEO he informed me that he was so pleased with my performance and wanted to retain me that he would pay me only 5.25% and but there was an additional 4.75% 'accrued' for me. But I needed to show my future commitment to the company to receive payment. I also confirmed with the accounting manager that she had been informed to accrue funds for me -- not to be released until he permitted.

Did the boss explain what was meant by "showing your future commitment to the company"? Did he want you to sign a contract or brand the company logo on your arm?

I resigned.

This may not have been the optimal move with a lot of unpaid commission on the line.

I feel that I already earned my commission even if I have no written contract. At the least, I should have been paid my 7%. Worse, he was intimidating me and holding back what I fairly earned. Note: This shortfall is 10% of my yearly income, otherwise I would let it go.

What you "feel" about the situation probably doesn't have anything to do with whether you'd recover. You might have been better able to protect your rights if you had consulted a lawyer before quitting - then maybe you could have put yourself in a position to at least file a retaliation claim.

Do I have a case and if so, what is my best course of action?

When you don't have a written contract it's much harder to recover commission and bonus wages, because unwritten employment agreements are usually unenforceable as contracts per se. You may be able to claim "quantum meruit" damages (translated, meaning fair pay for your work) or you might even be able to seek damages under Florida's Unfair and Deceptive Trade Practices Act. In other words, you may have some backup remedies but it would seem that in order to get a good sense for what they are you'll need to consult a lawyer.

It would be a very good idea make sure that the lawyer you talk to has successfully recovered commissions based on an unwritten contract in the past.

Turbowray, the funding cut was here in Maryland. They started taking claims again the first of August.
Whew, I'm glad!!

MikeWas asked some good questions. Hopefully this clarifies:

1. They do have documentation on file regarding my 'plan.' I was given the impression that it is clear and specific. I do not have access to that document, however.

2. The company pays commissions on the very next payroll after the check has cleared from the customer. In my case, they missed the next 2 payrolls. I kept complaining and got 50% payment on the 3rd payroll.

3. My boss was unclear about his expectations. He insinuated that I wouldn't get paid if I left the company even though he agreed verbally that I earned the commission.

4. I resigned because I was going to resign anyway. This is standard operating procedure from this company and the vast majority of people know it goes on. Sales reps last no more than 2 years there because they regularly get cheated on payment.

I'm not excited about securing an attorney to recover my losses. I am, however, going to express myself in writing (professionally) after my last day. I'm tempted to CC all relevant members of management for the sake of future incidents and future employees. That way no one can deny that they were unaware of the practices being carried out.

Oh well. At least I have a written contract with my future employer!