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Sales Commision and Deductions California

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  • Sales Commision and Deductions California

    We have sales people that begin collecting commission as soon as temp workers begin working and providing payroll to our staffing firm. On a few occassions, the Client our saleperson began working with, starts to fall behind on paying the invoices. Then, they go bankrupt, etc. Can we take back the commission that was paid to this salesperson based on the hours a temp employee worked, but which we never collected from the Client. So, the Company is out thousands of dollars.
    Note: The owner does not want to change how commissions are paid. But, would like to be able to collect commissions that we paid out for business that was never collected. Thoughts? Ideas? Solutions?


    Brook P.
    Brook Parker

  • #2
    Make sure your commission plan is clear that commissions are earned when the invoice is paid. In that case, commissions are received before they are earned- and if it ends up that they don't get earned (because the invoice doesn't get paid) you can take them out of their future commissions.
    Megan E. Ross, Esq.
    Law Offices of Michael Tracy

    Disclaimer: The above response is a general statement of the law and should not be relied upon as legal advice. It only assumes the facts that are stated in the message. The above response does not serve to form an attorney-client relationship.


    • #3
      Thank you very much!
      Brook Parker


      • #4
        Does anyone have a copy of a sales agreement I can look at as an example?
        Brook Parker


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