employer holding commission after termination
jmjm519
1 Post
I live in NJ. I worked as a sales rep for a home improvement company and left my position in May. I still have not been paid my back end comissions totaling $22,000. All but $500 is from completed and closed jobs. My former employer said that it is his policy to hold all commissions until all jobs are complete. He has followed this policy in the past, but it is not in writing. The job that has the remaining commission is on hold and will not be done for many more months (from a delay that is out of my control and not my doing). Is it legal for this employer hold money from other jobs until the completion of the final one? I have in writing from the company the amount owed to me.
I was an employee of the company- on their payroll.
I was an employee of the company- on their payroll.
Comments
Check out the NJ laws on wage payment and witholding here -- may help you out: http://lwd.dol.state.nj.us/labor/wagehour/lawregs/selected_nj_state_labor_law.html#1141
If you signed anything upon hire, there could be issues. As long as you were paid all your base pay, and that met the minimum wage or salary level tests, this kind of thing can get sticky.
Usually, commission pay plans of this size involve some sort of holding to deal with chargebacks. If there is no potential for a chargeback, I think he's on weak ground holding anything unless you signed something that is legally binding. If there is potential for a chargeback, ask him to pay you everything except the amount that could be charged back if the last deal falls through. If he says no or is otherwise unreasonable or untimely in payment of your earnings, then go to your state's Department of Labor and Workforce Development, wage and horu division, and make a complaint:
http://lwd.dol.state.nj.us/labor/wagehour/wagehour_index.html