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Bonus / Commission payment after resignation... Arkansas

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  • Bonus / Commission payment after resignation... Arkansas

    I'm hoping someone can help me with this one, since there is nothing covering commissions/bonuses through our state DOL. I work at a recruiting firm where I place " temporary" workers as well as make "professional/permanent" placements, for a one-time fee to the client. In an attempt to get our perm. placements up, my employer started a "bonus" plan to award the recruiter with a % of the fee that our company gets - which could also be referred to as a commission, since it's based on sales. This was never written in a "contract" format but an email was sent setting the stipulations, main one being that IF the candidate (placement) was still employed by client after 3 months, THEN the bonus would be paid out to the recruiter. I have decided to resign from my position in a few weeks (with notice given) but am still due this "bonus" for several placements, however, the 3 months won't be for about 4-5 weeks after my last day. Are they obligated to pay me for this? And would it fall within the same guidelines as wage & law or are they within their rights to wait until the afore mentioned 3 month rule?

  • #2
    Only an Arkansas attorney who has read your commission agreement in full can answer this question.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      It seems you had no written & signed contract - only an "e-mail agreement." You can try running everything you have re the "bonus/commission" by an attorney in your area & see what he/she thinks.
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      • #4
        You aren't due the money early because you are quitting if that is what you mean. They aren't obligated to pay you on the assumption that the placements will last the full 3 months.

        Whether you are still due the commissions or whether you must be employed on the date they would ordinarily be due is better answered by a lawyer who has reviewed your agreement.
        I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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        • #5
          I don't expect the money early, just wondering if anyone knew of any cases that would apply...if they were obligated to pay me once the 3 months was complete. Since there was no "agreement", or contract, per se, only an email stating the terms, which were simply a percentage of the fee would be paid once the 3 months is complete. Seems that this would be more of a commission since it's based on "sales" as a percentage of the fee assessed to the client & work that was done by myself...as opposed to awarding a set fee, or "bonus", for going above & beyond what is normally expected. This was being added to our job responsibilities & expectations.

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          • #6
            http://nationalsalesrepattorneys.com...-rep-statutes/

            See the above link. Yours is kind of a grey area as it isn't clear that the commissions are even earned until 3 months after the placement. It might be worth a call to the state wage and hour division to get their interpretation.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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