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Dealing With Unpaid Sales Commission

On Behalf of | Nov 9, 2017 | Wage & Hour

It is common for sales reps currently experiencing transitions at work, to close sales without being compensated accordingly. Compensation should not be withheld from these workers, under most circumstances. Many legal disputes have arisen as a result of this illegal comportment. There are times when the sales representative closes the sale yet the client doesn’t pay until later on after the rep has left the company. So when is the rep legally entitled to these commissions? This is a complicated question that only an experienced California wage & hour attorney can answer for you.

There are many factors that need to be considered when studying wage and hour cases. Factors such as the state’s laws, a written contract, and other forms of communication are key to the outcome of your case. Although federal courts have some general guidelines they may consider, sales reps should be familiar with these laws and prepare themselves should the need to file a lawsuit arise. The more evidence you can gather with the help of a California wage and hour claim attorney, the more chances of winning your wage and hour case.

Your Contract

When you were hired, your employment contract generally includes your obligations and incentives. Perhaps your employer will argue that it was clear you will only get paid when the client sent in payment. However, most employment agreements don’t specify that. So if you were guaranteed a percentage of your sales, you should get paid accordingly, unless your contract specifies otherwise. If your sales commission is contingent upon the client sending payment, you must adhere to these specifications in your contract.

It is important you secure a copy of your contract or any other documents that prove your employer’s expectations and obligations. These documents are essential as they may impact the outcome of your case. You can also make copies of employment handbooks and any other written communications between you and your employer. It is best your attorney reviews these documents and provides you with insightful feedback. These cases generally require expert legal advice. Never sign a release package without consulting your attorney first.

Communication With Your Employer

Courts will also consider any type of communication you had with your former employer if there are no contracts available. For instance, if your employer sent an email stating that they can’t pay you for a specific sale because the customer didn’t pay, the courts will accept that as a policy unless these statements are challenged. The timing is also another important factor. This the time you were negotiating a contract with your employer documenting your rights and your employer’s rights and responsibilities.

Your Initial Case Assessment

To best protect your legal rights, it is important you discuss your wage and hour case with an experienced attorney in your area. If you are involved in a wage and hour dispute with your employer in California, don’t hesitate to contact our law offices. We can help you resolve your dispute and guide you through the basic process.