Are we right??

HRH

A salesperson has quit. We have a signed agreement from all salespeople from day-one that they are paid on straight commission and they are paid once we are paid (job is closed). This is the first time this has ever happened in the 12 years I've worked here, but she has a job that is delinquent in paying us. Under Illinois law, with the signed agreement, are we obligated to pay her commission before we are compensated?

marc

I am not a lawyer and no longer play one on TV - but my take is you pay only what is earned. In the case of your agreement, the commission is not yet earned so it is not due until you have collected from the customer. ONce collected, then you owe it whether or not the salesperson is a current EE.

That is a common sense answer, not to be confused with a proper interpretation of Illinois law - I reserve the right to be completely sensible and still wrong.x:-8

HRH

Thank you! Your humor helps!! That is my sense too, but she has contacted the DOL and is playing hardball. Hopefully, we will hear back from our attorney today. We want to do the right thing, but at the same time, not succumb to blackmail. She claims the DOL says it's our problem to collect the payment and shouldn't affect her being paid.