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TX - Unpaid Commission

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  • TX - Unpaid Commission

    I left employment from a company with a branch in Texas but is based out of California. When I left they owed me approx 10K in commission. They still have not paid it and it has been over 2 months. There was this nice clause in the commission contract that effectively states that if they have not recieved payment within two months from the company to which the products were sold then they will not pay the commission. One of the deals went through a reseller so they should have been paid immediately. In addition the commissions department is notorious for not paying commissions correctly and sometimes not at all.

    I received a spreadsheet and it had a column that showed that none of my commissions are being held and that I should be paid. However, when I ask about them they say that it does not look like the company was paid for the products yet. There is really no way for me to know if they are ever paid or not unless I go to the companies who purchased the products and request that they provide me with that information.

    Do I have a leg to stand on in trying to get paid from this company? Any help would be greatly appreciated.

  • #2
    Unless you were paid on commissions only (no base salary), the Texas Workforce Commission will not take this situation on as unpaid wages. Texas law applies, since that is where you were working; the fact that the company HQ is in California is irrelevant. If you feel the employer has not abided by the terms of the commission agreement (hopefully, you have a copy), you should have an attorney review it to see if you have a civil case that has merit.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    • #3
      Thanks for the help.

      Thanks for the help. I was base + comm. They have had enough litigation in the past to have a well revised version of the commission agreement. :-)


      • #4
        You can definitely sue these guys for the 10K. I recommend against using an attorney. Too expensive. Would cost a minimum of 3K to have an atty handle this. With no way to know whether you will win, this isn't the type of thing you want to dump 3K+ on.

        Go to the courthouse in the county where the workplace is located. Go to the clerk's office. Tell the person at the counter that you want to file a civil suit and need the forms. They will give you the forms - which you might have to pay for. Then you fill them out and file them with the clerk, along with the filing fee, and you're there. Clerk will guide you on how to serve defendant, etc.

        Alternatively, you can waive your right to collect the amount in excess of the small claims court jurisdiction for Texas (I don't know what the max. amount is in Texas, but I'm guessing less than 10K), and then pursue this in small claims court. This would be MUCH easier and would provide for a quicker resolution and possibly a higher chance of winning. However, you'd only be able to get the maximum amount available in small claims court. Procedure is the same, you'll need to go to the courthouse in the county where the workplace is located, and ask the clerk how to file a small claims suit.
        Last edited by Guest; 09-15-2005, 10:53 AM.


        • #5
          Thanks for all of the help

          I mentioned to them that I did expect to be paid on everything and that I did not want to have to pursue other avenues however I would if it was not paid. Amazingly they paid the full amount (even the amount they said had not been paid by the clients). They sent the check out on the expected date and I did not even have to keep calling over and over asking where it was, unlike the previous cycle. Thanks again for the input.


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