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Commission Payments

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  • Commission Payments

    I live and work in Tennessee for a company that is headquartered in California. I am a salaried employee but I also participate in a commission plan that states that payments will be paid monthly. Payments are only made on sales amounts that have been collected from our customers.

    I have not received a commission check since early December 2006 and I am considering changing jobs. There is a large amount due to be paid to me and I’m wondering if I will forfeit my commissions if I leave the company before I receive payment. I believe that my commission is due in the month that the payment is received from our customer but I would like to get an opinion.

    If I have to go to court to collect, would I have to go to federal court and what type of impact would this have on the court proceedings?

    Finally, is there any legal difference between a bonus plan, commission plan or incentive plan? Or, is it all the same?

  • #2
    What does your commission agreement say?
    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.


    • #3
      Originally posted by TennMan View Post
      I believe that my commission is due in the month that the payment is received from our customer but I would like to get an opinion.
      That is not a matter of law, in most states. The company usually defines when the commission is earned and when it is paid. The company could make it a quarterly or annual payment. They could require that you still be employed at the time commissions are paid.

      Hopefully, you have a written plan or agreement.
      Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.


      • #4
        The company policy states how the amount of the commission is calculated and that payments are to be made monthly (which they have not). The fact that commissions are paid only on invoices that have been paid by the customer is detailed in an e-mail. There is no mention anywhere about an employee being currently employed to receive payment.

        That's what I'm really wondering about. I believe that the commission is earned but, if I leave the company before I get paid, do I have any legal standing to collect?



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