Commissions / departing sales person

Hatti

Is there a federal law regulating payment of commissions to terminating sales persons? We pay on 'collected sales'. What about 'sales in process' when the sales employee is leaving the company and payment for some projects has not been rec'd.? Can the employer withhold payment of commissions until that sale is finalized by payment in full?

Don D

There is no federal law that addresses payments of commissions. Your company policy and the written offer letter will rule on what he has coming and when it should be paid.

Hatti

I appreciate your response, Don. I was sure we had this covered under our policies and written agreements, but our Pres. wanted to be sure.

Thanks. Hatti

System

Hatti,

Some states have their own laws on this subject. I think they typically tell you how to calculate commissions in this situation unless you have an agreement with the ee to do it a different way.

If you're an Employment Law Letter subscriber, you can check the Subscribers Area of this website for state statutes or past newsletter articles.
[url]http://www.hrhero.com/lc/[/url]

Good luck.

James Sokolowski
HRhero.com

Hatti

Thanks so much for your response, Jim...We have the situation covered, as I thought - Our President just wanted to be certain. We do subscribe to the Law Letter and find it very useful. Hatti