Tennessee Commission Law

[jpc1961]

I am an outside sales person in an Indiana Territory for a national company based out of Tennessee. I have a contract with them to sell for this company and am paid by straight commissions + reimbursed .26/mile for gas.

My contract is based upon Tennessee law and states that if I terminate my employment voluntarily with them that I will be paid on any outstanding sales that I have for a 2 week period immediately following my voluntary termination, however it does not state what commissions will be paid if I am terminated by the company.

I turn in contracts for days of photography for this company (for each of my customers) and am paid by the day of photography (commission based on a sliding scale upon how many photography sittings that customer has that day). I have days booked well into 2006 that I would obviously forfeit if I terminate voluntarily, but what happens if I am fired by the company? Does Tennessee law allow me to be compensated for those future days I have booked?

[Pattymd]

Probably not. However, you should have an attorney review your agreement to see if it would be a breach of contract should this occur.

[AngellaMorning]

I disagree with pattymd's reply. You can get paid for sales made.
A contract that forfeits future sales made is by law is considered "unconcionable." The employer will have to pay future wages even if you quit--but you will probably have to fight this in court.
This issue of future sales made and the commissions earned is addressed in a California case called Ellis vs. McKinnon Broadcasting Co.
Don't be discouraged that it is from California and not Tennessee because Tennessee has a provision of law (Tennessee Rules of Evidence--Rule 202) that allows the determinations from other states permissable in Tennessee cases. This means that it will support your right to get your wages in case of a dispute.

[Pattymd]

I didn't say he couldn't get his commissions. What I said, or meant to say, was that this is not a wage and hour issue. It is a contract issue. That's why I told him to see an attorney.