Commission Disputes

"The Present is a Point just passed."
- David Russell

If your company pays commissions, you have probably experienced commission disputes. What you may not know is how the law views commissions.

First, commissions are WAGES not bonuses. Next, the law provides a “test” for commissions, in two parts: Is the commission “definitely determined” and has it become “due and payable to such employee”?

Of course, both parts of the test can raise other questions.. Is there (or was there) a written or verbal contract defining the commission? Was the commission clearly non discretionary? Was the accounting on the part of the employer truthful and accurate? Is the commission so large that it is more of a contract matter between the parties than a wage?

Disgruntled and often former employees are responsible for an inordinate number of commission disputes. Although the employee has rights, let’s remember that you as the the employer have rights also. Business owners can’t allow themselves to be bullied into submission in these disputes.

Contact SO&L today and let us evaluate your position and outline the best strategies for resolving commission disputes with your current or former employees. Don’t let the Time Clock punch you on this issue!

We invite you to call us at 818-461-8500 or you may prefer to use our Confidential Contact Form.