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Unpaid residual income California

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  • Unpaid residual income California

    I am an independent sales representative for a credit card processing company and I receive monthly residual income for the merchant accounts I have signed up. My spouse also worked for the same company in a salaried, upper management, exempt position but was terminated this month. My spouse received severance pay. The company has not paid me my residuals for June or July, stating that per the severance agreement with my spouse, no further payments are due. I signed a separate contract with them as a sole proprieter, but they are saying that I am an "heir" as per the separation agreement with my spouse so I am collectively considered "employee". There was no mention in the separation agreement that my business would be affected and it did not state that they were stopping my residuals. They never referenced my business' name in the separation agreement with my spouse. Is this legal? Can I take legal action against them for residuals owed for June since my spouse was not terminated until mid-July? Per my contract with me, they are suppose to notify me in writing if our contrated is terminated and they never did this. The only way I found out is when I emailed them to question them why I haven't received my residuals. Any help is apprecriated.

  • #2
    I need to know if you are legally an employee (W2) or independant contractor (1099). Hint, those are legally the only two choices.

    - If you legally are an employee, you need to download a cooy of the CA-DLSE manual. Key word search "commissions". Read the entire chapter.
    http://www.laborlawyer.net/dlse/DLSE_EnfcManual.pdf

    - If you legally are an independant contrator, then you have no labor law remedies. You are legally a vendor and are subject to contract law only. You will need to read your contract and maybe have a local contract law attorney read it also. If you have recourse it is through small claims or general court actions.
    Last edited by DAW; 08-01-2012, 05:33 AM.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      I am an independent contractor (1099).

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      • #4
        Ok, then, as DAW noted above, you are subject to contract law only. You can take your contract to an employment or contract attorney for review & opinion. Your recourse to try & get unpaid income is through the court system - small claims court if the amount qualifies, otherwise a "general" court action.
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