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View Full Version : Receiving commission after resignation Ohio


Tracee
10-06-2006, 10:13 AM
My husband has only worked for this employer for a few months. When he first hired him on at an hourly rate they talked about him eventually going into sales. He told my husband to let him know when he was ready. He sent him to a 2 day class (unpaid-told him he would be reimbursed for those days in 1 year/also made my husband PAY HIM for the class $500. Because of our current finances, we felt it safe that he stay hourly for awhile. A couple weeks ago, the employer informed my husband with NO notice that he was putting him into a straight commission sales position. He has to use his own car/gas, phone, fax etc. It could take weeks/months before one/any of his sales goes through for him to get paid.
The job has to be complete for him to get his commission. He sells furnace replacements. He is looking for other employment but has about 10 bids out there that could go through with a potential for hundreds/thousands in commissions. I'm afraid if he resigns this guy will keep all of his commissions.
Are these vested wages since this was his only wage? If there is a law, how can he make sure he gets his $? He's on his second week of NO paycheck. I then noticed while searching for this subject that there may be a law that says his employer has to be paying him at least minimum wage? Since he only working on appointments now, he rarely goes into the office so how does that work? Does he turn in hours that he has spent working on the sales/phone calls/driving to the sales? Sorry this is so long, but I have been desperate for answers and feel that we will get screwed by this guy. He has proven to be quite a jackass. Thanks much for any help.

ScottB
10-06-2006, 11:13 AM
Do you want the bad news or the worse news first? (There is no good news).

From the looks of what you posted, your husband is a straight commissioned outside sales person. As such, there are no minimum wage or overtime requirements . That's the bad news. Employers sometimes offer a "draw" to help the sales rep meet some of the usual weekly expenses of living, but this is not required of them. Your husband's employer now has free help out selling for him. Should your husband walk, his work has cost the employer zilch, but could profit him a bundle.

Worse, commissions are usually based upon some sort of commission plan. Ideally, these are in writing! and lay out exactly when a commission is earned. This could be when the sale is closed or when the product is delivered or when the customer pays for the delivered product or when the guarantee period for the product has expired. From what you are posting, no sales have been closed yet -- based upon that, there won't be any commissions if your husband quits now, even in a very generous commission plan (and I kind of doubt that the employer in this case has a generous plan in mind).

However, your husband should seriously consider cutting his losses and leaving the company. Apply for unemployment, based upon the radical change in the conditions of work. Won't hurt to apply anyway.

Tracee
10-06-2006, 11:28 AM
Thanks Scott. I figured as such that he would end up screwed by this jerk. That's right, free help. The man doesn't care that he has a family to support.
I'm hoping he can stay there long enough to get some money out of him! He's trying to get a couple of sales closed today. This guy has not earned a 2 week notice!

ScottB
10-07-2006, 09:39 AM
I'm hoping he can stay there long enough to get some money out of him! He's trying to get a couple of sales closed today.

If the commission is earned when the sale is closed, that would be great, but, unless you have the commission plan in writing and it defines exactly when the commission is earned, your husband could find himself fighting to get paid for what he thinks he earned. If it is not in writing, then the employer can lie ("oh, no, the commissions are not earned until the customer has paid for the product"). Things could get messy and, in the meantime, your family has zero income and you only know how many expenses. You cannot go on like that forever.

Now, if the sales are closed today, your husband could ask for an advance (a draw) on the commission. The draw would be deducted from the commission when it is paid, but it would give you some cash NOW to meet your financial obligations (like putting food on the table). There is no requirement for Scrooge to cough up the money, but it won't hurt to ask for it.

Good luck.

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