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previous employer refuses to pay commission

Posted on 5/7/14 at 8:33 am
Posted by Happygilmore
Happy Place
Member since Mar 2009
1810 posts
Posted on 5/7/14 at 8:33 am
Here's the deal:

My last day at my previous employer was March 13th. I was in sales and the last time I received commission on my pay stub was in February and it was for the months of November and December of '13. (they were never consistent on commission payments)
After I left for my new position i received my last pay check in the mail, and no commission was on it. I have been back and forth with them since, and I got an email yesterday saying I will not be getting a check for the commission earned from Jan 1-March 13. What type of recourse can I take to get the money that is owed to me?

Thanks for the help
Posted by jeepfreak
Back in the BR
Member since Oct 2003
19433 posts
Posted on 5/7/14 at 8:36 am to
Depends on the company policy that you came into employment with. Most companies will not pay commissions or bonuses unless you are still employed when they are paid to the entire sales force, regardless of when you earned them. Did you have a contract with them? Was the compensation package laid out when you took the job?
Posted by Odinson
Asgard
Member since Apr 2014
2749 posts
Posted on 5/7/14 at 8:41 am to
lawyer up
Posted by Happygilmore
Happy Place
Member since Mar 2009
1810 posts
Posted on 5/7/14 at 8:41 am to
I was the only sales force.

The company was 4 people.
Owner (never there) "manager" myself, and warehouse guy to fill orders
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 5/7/14 at 8:43 am to
i had a similar situation. Lawyer ended up saying i was SOL.

as stated it depends on your contract and reason for termination/leaving
Posted by jeepfreak
Back in the BR
Member since Oct 2003
19433 posts
Posted on 5/7/14 at 8:52 am to
Did you have a written employment agreement or was it a handshake kind of deal? I was in sales for 17 years with mid and large sized corporations and they always had the incentive comp plans written down, always stating that I was not entitled to commissions/bonuses paid after I left employment. If it was verbal, you may as well just let it go. You won't be getting paid. If it was written down and didn't specifically state that you had to be employed you may have a case, but I wouldn't hold my breath. Most likely you'll have to shell out more in legal fees than you'd get. Sorry to be the bearer of bad news.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
36940 posts
Posted on 5/7/14 at 9:01 am to
Was the commission a significant part of your pay?

Generally, if you are in sales, the commission is earned when you earn it, and they have to pay you what is earned.

This is in comparison to bonuses, which generally state that no matter what the formula is, you have to be employed at the time the bonus is paid out.

Did you leave voluntarily, or were you forced out / asked to resign / fired?

Did you have any kind of written agreement?
Posted by Happygilmore
Happy Place
Member since Mar 2009
1810 posts
Posted on 5/7/14 at 9:36 am to
written agreement,

i left for a different position, voluntarily.

it was commission, not bonus, but the owner is a prick weasel so i doubt i will get anything, just asking the best route to go and if there is a chance to get the $$$ before I call.

im pretty sure after we have the phone conversation there will be no way in hell he will cut a check, but i will feel better.
Posted by TJG210
New Orleans
Member since Aug 2006
28332 posts
Posted on 5/7/14 at 10:00 am to
Are we talking a significant amount? If all else fails, threaten to sue, tell him you've hired a lawyer, etc. It may persuade him to pay you off to get rid of the potential hassle.
Posted by bobaftt1212
Hills of TN
Member since Mar 2013
1313 posts
Posted on 5/7/14 at 10:05 am to
get an attorney to draft a letter stating that you will file suit if you aren't paid in full. he may decide that it isn't worth the trouble and pay you what he owes you.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
36940 posts
Posted on 5/7/14 at 10:55 am to
If it is more than a few $100:

1) Call him (no e-mail) and discuss the issue, and why you need to be paid the money you earned under the agreement.

2) If no dice, find an attorney friend to spend 30 min writing a nice little letter to him.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 5/7/14 at 11:28 am to
quote:

written agreement


Then what you are entitled to should be spelled out there. If it isn't you may not be entitled to anything at all.

If it is then depending on the amount owed you might try small claims. Might not be worth it to lawyer up.

ETA: If you're uncertain you could probably get an attorney's opinion for not very much.
This post was edited on 5/7/14 at 11:29 am
Posted by agdoctor
Louisiana
Member since Dec 2004
3142 posts
Posted on 5/7/14 at 1:52 pm to
Most places you have to be employed when they are paid. There are several companies I am aware of that basically cut a whole year of commissions/bonuses if you leave early.
Posted by GeeOH
Louisiana
Member since Dec 2013
13376 posts
Posted on 5/7/14 at 2:41 pm to
how much money are we talking?

$10, $1000, $20k

The guy will lose if it is spelled out how your commission is set up. If it is a You sell, and I pay you "X", then you can collect on items sold while employed. If it is commissions on a recurring sell, even though it's a customer you set up, then you may be SOL.

If you want help, quit the dancing and give us some details to work with.
Posted by CajunAlum Tiger Fan
The Great State of Louisiana
Member since Jan 2008
7868 posts
Posted on 5/7/14 at 2:55 pm to
Never leave a sales job until you are comfortable with what you have been paid to that day. You will always walk away with money on the table.
Posted by Happygilmore
Happy Place
Member since Mar 2009
1810 posts
Posted on 5/7/14 at 4:36 pm to
it was a customer I had brought in and had been receiving commission on. The account is listed as mine with my salesman id number. i get a percentage of the invoice to the customer. Even though they had done quite a bit of business during Jan, Feb, and March I did not receive commission(my employer is asmall mom and pop company, they paid it when they would get around to it. I wasnt really in a position to demand it because, like i said, the owner was a prick and had been known to run people off for shite like that.) i left mid march and when i received my final paycheck two weeks later it still wasnt on there, thats when i listed it all out in emails back and forth. i tried calling and now the manager says i need to deal directly with owner.

we're talking like 1400.00-1700.00 which is money i could really us right now
This post was edited on 5/7/14 at 4:38 pm
Posted by GeeOH
Louisiana
Member since Dec 2013
13376 posts
Posted on 5/7/14 at 6:53 pm to
Well just have an attorney friend draw up a letter. Actually, you could sue him in small claims court. He has no defense. Also, if the customer is a friendly person, ask him how much business he did during those months with your company.
You will win, plus he will have to pay court costs and attorneys fees. Also, it is quite frowned upon to not pay employees as agreed, the dept of labor gets pissed, trust me.
Posted by AlexLSU
Member since Jan 2005
25341 posts
Posted on 5/7/14 at 7:03 pm to
Do you have an idea of how much net profit the company generates per month? If it's not much, or none at all, they'll probably buckle at the thought of court fees
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