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Sales Commission

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  • Sales Commission

    First off, this forum is a great resource and I commend the dedicated attorneys that make this site possible.

    I was recently laid off due to political reasons, I realize that as an at-will they can terminate me for liking my potatoes with gravy. However, I feel they may try to stiff me on my last commission check.

    My previous company paid according to product shipped, so in a commissionable month 60% of orders must ship in order to be compensated. During the last full month I was employed, only 57% of my orders were shipped, and thus I was not payed commission, but that is not to say that the remainder will not ship.

    My question is whether these thresholds still apply in the case of termination and if so can they justify not paying my commissions. I was in a senior position and was privy to executive decisions, they recently forgoed paying a terminated employee's last commission check on the basis that he under-performed in comparison to others on his team.

    The former employee was a bit ignorant of these situations and accepted their word as gospel. I have a feeling they will try to avoid paying my last commissions, can they do so? Thanks in advance for your assistance.

  • #2
    What does your commission agreement say?
    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.


    • #3
      I am guaranteed payment as long as 60% of my orders have shipped, does CA law not require proper compensation of former employees for all work performed while employed? Thank you for your prompt response.


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