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  1. #1
    Join Date
    May 2012
    Posts
    3

    Default Bonus and Commission Pay-Out After Resignation

    My question involves labor and employment law for the state of: Arkansas

    Ok, short & sweet, although there are several issues in play here...I work for a staffing/recruiting agency. The owner started paying a bonus/commission to the person making the placement on any permanent placements made...a % of the fee that is charged to the company, with the stipulation that it would be paid 3 mths. after the placement was made IF the candidate was still employed at the client company. Now, I am resigning & I have several placements I made that would not "pay out" for about 6-8 weeks after I resign. There was no contract...only an email outlining the guidelines as to when and how much the pay-out would be, it does NOT state that you have to be present/employed to get this bonus. Since it's really more of a commission, are they obligated to still pay this & is there a timeframe to pay it out since I'm resigning before the 3 month rule?

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Bonus/Commission Pay-Out After Resignation

    Generally speaking, no they are not. Company policy and existing contracts could change that. If the amount is worth chasing in small claims court, you could can file for what you can prove. You may or may not win.

  3. #3

    Default Re: Bonus and Commission Pay-Out After Resignation

    Unfortunately, OP, location may be your undoing here.

    In many states with fairly robust wage collection statutes, the courts have determined that an employer has to pay the commission if the employee did all of the requisite work to earn the commission. These courts would require an employer to pay such an employee irrespective of the fact he or she resigned or otherwise no longer works for the company.

    I do not know whether (1) Arkansas has a similarly robust wage collection statute; or (2) the state courts have made similar decisions under analogous circumstances. At this juncture, it may be worthwhile for you to consult with a local employment law attorney to inquire whether you can collect your commissions under the state’s wage collection law.

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