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Commission question Texas

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  • Commission question Texas

    Our company's owner recently sent an email to all the sales people informing them that if a customer did not pay within a certain time period our commission would not be paid at all.

    Is this practice legal in Texas if our agreement has no language regarding penalties for slow paying customers?

    Ricky

  • #2
    It's likely legal...

    Commissions are payable in Texas based on terms of the commission agreement. This can be written or verbal. It would appear that the employer is adding language to your agreement regarding "penalties for slow paying customers".

    Next question is obviously whether an employer can unilaterally modify a commission agreement (pay rate). They can, provided it's done before time is worked at the new rate, and the new rate does not go below federal and State minimum wage. Your acceptance of the change is inferred if you work time at the new rate.
    Last edited by Texas709; 03-11-2009, 07:34 AM. Reason: more precise wording

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    • #3
      Thank you. The email stated that this policy was retroactive to a historical date. Wouldn't that conflict with the state law?

      Ricky

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      • #4
        Probably. Confirm with the TWC.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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