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 quite 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 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 on the sale of a product or service. Commission disputes often arise in the wake of a layoff, resignation, or termination and can be extremely detailed and highly emotional. In many cases, these disputes are the result of situations similar to the following:
- What if the alleged victim quits or is terminated after making a sale, but before the customer has paid for the product or service?
- What must an employee do to be considered the originator of a sale?
- What if the commission formula is based on an annual target or goal, but the company changes or restructures the formula 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 important 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. Some employers may think that their employee didn’t perform to their full extent before termination. In addition, there are commission agreements and state wage laws that are factored in and must be fulfilled.
If an employee is terminated, 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, depending on the law of whatever state they are in. In general, the employer is always required to pay their dues to the employee even if the employee quit, was fired, or laid off. If your former employer is giving you a difficult time regarding unpaid commissions, then you need to seek help from an employment attorney in Los Angeles.
SALES COMMISSIONS DISPUTES
A salesperson counts on their commission, as it is often a significant amount. For example, if a real estate agent sells a property, this can mean thousands of dollars in his or her pocket once the sale is final. While most commissions are paid on time and due to agreement upon terms, disputes about potential payment may arise occasionally. Problems such as unpaid sales commissions can make it hard for the sales people to survive financially.
If you are experiencing issues obtaining your sales commission, don’t hesitate to reach out to our team to discuss filing a sales commissions dispute. Our team has successfully represented victims who were not awarded their sales commissions disputes. Contact our team for the legal help you need and deserve.
CAN A COMPANY WITHHOLD COMMISSION PAYMENT?
No, employers cannot withhold commission payment, however it depends on what was agreed upon before employment. Unfortunately, while the Fair Labor Standards Act oversees overtime and minimum page, there are no guidelines as to how commissions should be mandated. Employers and employees have a contract that details how commission will be paid and when it will be paid. If the contract does not say that the employer can withhold commissions, then they must pay a person according to the terms of the contract. You can refer to Can A Company Withhold Commission Payment.
EARNED COMMISSIONS – PAYMENT AFTER TERMINATION
In California, they consider commissions as a form of wage, which means that the employer must pay the employee within a specified day, or they will face legal ramifications. As an employee your earned wages will be included in your final paycheck. If you find that it is not, you may need to wait an additional period. Whether you are still on the payroll, after leaving the company, the employers cannot withhold it without facing damages. Additionally, prior to leaving as an employee you must complete the tasks presented to earn full commission within the specified time frame. For more information on payment after termination, you can refer to our article.
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 to avoid getting taken advantage of. We provide helpful content on commission, when you must be paid, and whether you are owed a commission when you leave the company. Prior to starting employment, your employer must give you a written agreement that outlines specific information about commissions, how it will be calculated and the frequency with which you will be paid. It acts as a formal contract once signed. From there, you should find the work 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.
HOW LONG DOES A COMPANY HAVE TO FIX A PAYROLL ERROR?
Commissioned employers must be paid twice a month. Normally, 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. Employees that work on commission must complete it, to be paid on time. 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 in fact 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.
Do these situations sound familiar to you? Do you believe you could have legal grounds for a commission dispute? If so, don’t hesitate to take action. Under Labor Code 200 in the state of California, it is clear that employees must be paid what they are owed. This amount owed includes both fixed and commission-based compensation. You can start the process of reclaiming what you are rightly owed, as these situations can be complicated and emotional. While many legal professionals will claim they can help you in a commission dispute, you will want to retain the services of a commission dispute lawyer in Los Angeles with previous experience in similar cases. The laws, codes, and regulations regarding employment law are constantly changing in Los Angeles and the state of California, therefore, it’s important to have an employment lawyer who is familiar with the ever changing laws.
THE LAW OFFICES OF MANN & ELIAS
At the Law Offices of Mann & Elias, we have more than 40 years of combined legal experience. If you believe you are the victim of a commission dispute, please Contact us today. Since founding our partnership in 1998, we have helped people from all walks of life recover more than $18 million in settlements and verdicts. Call us at 323-886-9564 for a free case review.