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  1. #1
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    Jul 2007
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    Default Employer Refusing to Pay Commission

    My current employer of 7 years has on several occassions refused to pay me commission on sales that I have made. I'm looking for information because there has to be some sort of law that protects me from this being that I'm on commission and am paid to make sales and yet I'm not being paid commission on all of my sales. To make matters worse, he is giving my commission to another employee for reasons that I don't understand. There are no specific rules regarding who should be paid on what sales...there is no employee manual, he just picks which sales he wants to pay us on. I can't help but feel angry that after spending hours with a customer to find out their needs and sell them a product they were looking for, only to have my commission given to an employee that was not even present that day. Please help!!

  2. #2
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    Default Re: Employer refusing to pay commission

    Do you have a written commission agreement?

  3. #3
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    Default Re: Employer Refusing to Pay Commission

    I was under the impression, that it is standard business practice to pay commissions on sales to the sales person making the sale.

    Using the analogy of possession being nine tenths of the law, isn't the sales person's name on a sales order, enough to establish who should be paid a commission on a specific sale?

  4. #4

    Default Re: Employer Refusing to Pay Commission

    Does this work the other way around as well? Do you get paid commissions that others have earned? Do others have your same problem? In what manner do you all keep track of sales and their commissions? Should be black and white. If there is a gray area, it should be cleared up and documented to that everyone knows what the proper procedure is. If there is moe than one in your company with the same problem, can you take it to a higher authority? Send that person a memo stating there is a lack of policy and procedure.

  5. #5
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    Default Re: Employer refusing to pay commission

    Quote Quoting cbg
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    Do you have a written commission agreement?
    No. The company really does not have any written company policies at all. This is a family owned and operated business.

  6. #6
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    Default Re: Employer Refusing to Pay Commission

    Quote Quoting danielpalos
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    I was under the impression, that it is standard business practice to pay commissions on sales to the sales person making the sale.

    Using the analogy of possession being nine tenths of the law, isn't the sales person's name on a sales order, enough to establish who should be paid a commission on a specific sale?
    I took care of the customer when they came in to the store...no one had established a previous relationship with them. There were no "commercial" sales reps in at the time and the customer said he needed to look at equipment that day so I showed him the products he was looking for, gave him all the information he needed to make an informed decision and he told me he would call back with a po number and order. He called on my day off, the owner took the call and asked one of the commercial reps to take the order. The commerical rep took the information & placed the order in the computer. When I came in to work the next day, that rep approached me about the sale and said that the owner told him to take the sale and the commission & follow up for future purchases. The customer reminded the commerical rep twice that he had worked with me on this sale and gave him the pricing that I had quoted him. The rep told me he felt I was entitled to the sale, but was told to take it. So I make the sale, the company gets paid and another employee gets the commission on his paycheck...how is that legal?

  7. #7
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    Jul 2007
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    5

    Default Re: Employer Refusing to Pay Commission

    Quote Quoting kandi6
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    Does this work the other way around as well? Do you get paid commissions that others have earned? Do others have your same problem? In what manner do you all keep track of sales and their commissions? Should be black and white. If there is a gray area, it should be cleared up and documented to that everyone knows what the proper procedure is. If there is moe than one in your company with the same problem, can you take it to a higher authority? Send that person a memo stating there is a lack of policy and procedure.
    The owner is very wishy washy, he always wants the customer taken care of (as he should), but whether or not he gives you the commission or someone else seems to vary from day to day. In addition to losing commission on this sale, that he says is a "commercial" sale, I lost the opportunity to wait on "my" customers. There is no policy and procedure, the owner tries to avoid confrontation at all cost. I can't take it any higher, he's the owner of the company. Once again how is it right for another employee to be paid commission on a sale when I had done all the footwork and the commerical rep was not even there?

  8. #8
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    Jun 2006
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    Massachusetts
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    Default Re: Employer Refusing to Pay Commission

    Okay, next question. The answer makes a difference where I refer you.

    Are you paid straight commission or base plus commission?

  9. #9
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    Jul 2007
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    Default Re: Employer Refusing to Pay Commission

    Quote Quoting cbg
    View Post
    Okay, next question. The answer makes a difference where I refer you.

    Are you paid straight commission or base plus commission?
    Base plus commission.

  10. #10
    Join Date
    Jun 2006
    Location
    Massachusetts
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    Default Re: Employer Refusing to Pay Commission

    Talk to the state DOL in your state (NOT the US DOL as commission law is state specific). They may or may not be able to help as not all states will take responsibility for commission issues. But try. They should at least be able to give you some idea whether or not your employer's "policy" is in violation of state law.

    If the state cannot or will not help, you do have the option of small claims court for any commissions you think you are due for which you have not been paid. But before you go that route, I would discuss the likelihood of your prevailing with an employment lawyer in your state. You don't need a lawyer to file in small claims, but you'll be to all intents and purposes burning bridges with your employer if you do so you'll want to consider all aspects pretty thoroughly.

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