RECOVER UNPAID COMISSION BY CONTACTING A LOS ANGELES COMMISSION DISPUTE ATTORNEY
If you work in an industry where commission accounts for a large portion of your financial compensation, you understand the importance of hard work and dedication. While many people will never have commission-related issues with their employer, they can be pretty common for other individuals. Do you believe you have been improperly compensated for the work you’ve done? If so, you may have legal rights to reclaim the commission owed.
WHAT IS A COMMISSION?
To understand what a commission dispute is in legal terms, let’s first look at “commission.” In California, per Section 204.1, commissions are wages (a form of compensation) paid to “any person for services rendered in the sale of such employer’s property or services and based proportionately upon the value.”
Section 2751 expands on this law. The following are not commissions:
- Short-term bonuses for retail employees
- Temporary incentive payments that increase payment per written contract (*Not decrease)
- Bonuses and profit-sharing plans – unless offered by an employer to “pay a fixed percentage of sales or profits” as compensation.
WHAT IS A COMMISSION DISPUTE?
A commission dispute is any discrepancy between an employer and employee regarding the compensation owed for work completed. In many cases, this involves financial bonuses, or commissions earned selling a product or service.
Commission disputes often arise in the wake of a layoff, resignation, or termination and can be highly detailed and emotional. In many cases, these disputes are the result of situations. Questions most of our clients have asked include:
- What if the alleged victim quits after making a sale but before the customer paid for the product?
- What must an employee do to be considered the originator of a sale?
- What if the commission formula gets based on an annual target or goal? And the company changes or restructures the procedure during the year?
GETTING PAID EARNED COMMISSIONS AFTER TERMINATION
While most employees would hope and expect to get paid for their work by employers, it is essential to know that getting paid earned commissions can be on a completely different schedule.
When it comes to getting paid earned commissions after termination, it can become very complicated and cause quite a conflict between employees and their employers. However, commission agreements, written contracts, and state wage laws are factored in and must be fulfilled.
If an employee gets fired, the employer is still required to pay the employee for their work. Under no circumstances is the employer free of not paying their former employee. The employer must pay their weekly salary, hourly wage, vacation pay, and commissions owed.
If your former employer is giving you a difficult time regarding unpaid commissions, you should consult with an employment attorney in Los Angeles.
SALES COMMISSIONS DISPUTES
A salesperson counts on their commission being paid out twice a month. For example, if a real estate agent sells a property, this can mean thousands of dollars in their pocket once the sale is final.
While most commissions are paid on time and in line with the agreement, potential payment disputes occasionally arise. Sales commissions arguments make it harder for the salespeople to survive financially.
If you are experiencing issues obtaining your sales commission, don’t hesitate to reach out to a firm with legal expertise within all aspects of employment.
LEGAL ACTION
Do these situations sound familiar to you? Do you believe you could have legal grounds for a commission dispute?
Under Labor Code 200 in California, it is clear that employees must receive fixed and commission-based compensation. The laws, codes, and regulations regarding employment law are constantly changing in Los Angeles and the state of California. Therefore, it’s vital to have an employment lawyer who is familiar with the ever-changing regulations.
HIRE THE TRIAL LAWYERS OTHER ATTORNEYS CONSULT
Since 1998, The Law Offices of Mann & Elias have helped individuals just like you receive the benefits they deserve. We represent clients at every state and federal court system level in Los Angeles, Riverside, San Bernardino, Orange, San Diego, and Ventura counties.
We know how to handle these cases best and get you the compensation you deserve. Call 323-866-9564 or email info@mannelias.com to schedule your first consultation.
WHY CHOOSE MANN & ELIAS?
Since Scott Mann and Imad Elias have founded the employment law firm, they have successfully recovered hundreds of claims resulting in over $18 million in settlements and verdicts. While there are thousands of lawyers to choose from, our success is rooted in:
- 50+ years of trial experience
- Excellent advocacy skills
- Intense preparation and research
- Quality care
Contact us today if you intend to file a claim against your employer. We charge no fee for the initial consultation, and all cases get handled on a contingency basis.
RELATED ARTICLES ABOUT COMMISSIONS
You have questions – we’ve got answers! Need more legal help? Check out a few of our legal articles below.
Rights Of Employees Paid by Commission In California
If your salary is based on commission in California, you should be familiar with your rights as an employee. We provide helpful content on commission, when you should get paid, and whether the company must pay you upon termination.
Before starting the job, your employer must give you a written agreement outlining specific commissions information. From there, you should find the working relationship and responsibilities straightforward. When in doubt, you can contact us at Mann & Elias for legal help to ensure your employer is not violating the terms of your contract and your rights.
Can A Company Withhold Commission Payment?
While the Fair Labor Standards Act oversees overtime and minimum page, there are no guidelines for how commissions should be mandated. If the contract does not say that the employer can withhold commissions, they must pay a person according to the contract terms. You can refer to Can A Company Withhold Commission Payment.
Earned Commissions – Payment After Termination
As an employee, your earned wages will get included in your final paycheck. If you find that it is not, you may need to wait an additional period. After leaving the company, the company cannot delay it without facing damages. Make sure to complete the tasks presented to earn a full commission within the specified time frame. For more information on payment after termination, you can refer to our article.
How Long Does a Company Have To Fix A Payroll Error?
Usually, if an employee was underpaid, it should be corrected by the next paycheck. For instance, one may have mistakenly forgotten to record hours.
There are laws in place that govern how long your employer has to correct paycheck errors. If you find that the earnings are less than five percent of your total paycheck, your employer has until the next paycheck to rectify the situation and can add the missing commission amount to the next check.
You can refer to How Long Does A Company Have To Fix A Payroll Error to determine if and when you need to hire legal representation if you feel that you have been negotiating payment.
FAQs ABOUT COMMISSION DISPUTES
How detailed should my sales agreement be?
Before you start the job, make sure that you have obtained a detailed, written employment agreement. It should list the terms and conditions, payment method, how to earn the sales commission, and the percentage you will receive upon completion.
We often recommend our clients question everything before they sign. If there are additional performance requirements, know what they are and what might happen if you don’t meet them. Unclear terms are the leading cause of commission disputes.
What happens if I don’t have an employment contract?
In cases where there is no employment contract, the terms of your employment will be unclear. We recommend providing us with other communications between you and an employer. For instance, the company may be unwilling to compensate you if a customer withholds payment on a sale. You have every right to force their hand when it becomes a persistent issue legally, and you’ve exhausted other means of retrieving pay.
Can my job withhold payment if I leave the company?
No – it is illegal for any company to avoid paying you commissions if you meet all employee requirements. California has strict policies regarding wage and hour violations, non-compete agreements, bonus disputes, and other aspects of employment law.
Can an employer take away commission payments?
The same rule applies – they cannot take wages from your paycheck unless specified in your contract. Standard commission deductions include:
- Selling products at a discount (reduced pay)
- Losing out on a commission
- Getting advanced payment before payday
- Payroll tax deductions
Why might I need to hire an attorney?
When your employer withholds or takes back a commission payment in violation of your contract, we can help you file a claim for the labor violation. Taking legal action is not straightforward. It might require you to file a report with the Department of Labor. At Mann & Elias, we can help you start the process to recover:
- Back pay and earned commission payment
- Compensation for all legal expenses and attorneys’ fees
- Other liquidated damages that might about to double the back pay you requested