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Employer not honoring commission pay from offer letter South Carolina

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  • Employer not honoring commission pay from offer letter South Carolina

    OK, I have a HUGE problem. I was just hired by a company (in September) that is a base and commission sales position. The job is selling a service to medical offices. Well, stated in my offer letter it says I am paid the commission on the sale as soon as the office opens the doors (meaning starts implementing our service). Well originally, to get started the company was charging the medical offices an upfront cost of $25,000. Then, they decided we can offer the offices a financing option where they are able to pay the $25,000 over the course of a year, so they can honestly wait until the 12th month to pay anything. Well my commission for setting up one of these offices is $27,000. Well, since September I have signed up 2 offices that are supposed to open up in December. That means $54,000 coming to me in December, (according to the offer letter and everything the company has told the sales team so far).
    Well, I asked my manager the other day if I got paid when I got the signed contract back from the offices, or if it was when they opened up the practice. My manager then stumbled for a minute and said, "Did you collect the 25k up front?" and I said, no, I offered them the financing like you suggested. He then said that he is pretty sure that I do not get paid my commissions until the company receives the 25k. I then said, well that isn't what it says in the offer letter and you or no one else for that matter has told me or any of the other sales people this. He said that it was originally like that but now since they are offering the financing that we do not get paid until all of the money is collected.
    My question is: is this fair or legal? This was never mentioned to me or anyone else and I have done a TON of work getting these 2 offices ready to train and everything else. Shouldn't the company have had to send out a document or something stating the changes to the sales reps so we would know this? Should I get a lawyer and take them to court? Help please!! This is a lot of money at stake that I rightfully earned. Thanks!

  • #2
    You first need to find out what your state laws are, because they vary from state to state.

    Even in the most commission friendly State (California), it's generally acceptable to withhold payment of commissions until the revenue is collected.

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    • #3
      Also you mentioned the "c" word (contract). Any time a contract is involved the answer almost always includes something like the following:

      "You need to take your contract and any other supporting documentation to a local attorney for review. Contract law tends to be very specific to the laws of the state involved and the exact wording of all related documents".
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        I work in SC but my company's home offices are in Florida and in California. So I don't know which one it would be decided by... Either way, if this is what it states in the offer letter and what was told to us as employees from the very beginning, then they should not be able to just up and decide to change their minds should they? To me, that is morally, and legally wrong.

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        • #5
          If you are working in SC then SC law applies.
          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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          • #6
            what type of attorney should I go see about this?

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            • #7
              Originally posted by smithrep View Post
              what type of attorney should I go see about this?
              You need to talk to a labor lawyer. I met mine through a friend of a relative. It's my opinion that personal referrals are better than the internet or phone book, but if you don't know anybody, just do a google search for "employment law" and city you live in.

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              • #8
                Or contact the Lawyer's Referral Service of your local Bar Association.
                I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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