Were you recently fired or let go from a job in California for which you earned commissions when you completed sales? Were you in the process of completing a sale when your employment was terminated? And, did someone else go on to complete the sale later?
This is a complex situation. You may wonder whether you deserve to receive a commission in these circumstances.
The following overview will cover the basics of this topic. That said, the best way to learn about your employer’s potential legal responsibilities in a case like this is to review the matter with a legal expert. At The Kaufman Law Firm, a California unpaid commissions attorney can help you better understand whether you have grounds to file an action against your former employer.
In California, employers are legally required to pay employees commissions if they have earned them, regardless of whether the employee is still employed at the time of payment. This is outlined in California Labor Code Section 2751, which states that an employer must pay earned commissions to an employee within a reasonable time after they become due and payable.
However, the question of whether an employee is entitled to a commission if they are terminated before a sale is completed can be more complex. In general, an employee is only entitled to a commission if they have satisfied all of the conditions set forth in their employment agreement or company policy regarding commission payments.
For example, if an employment agreement states that an employee must complete a sale in order to receive a commission, then an employee who is terminated before completing a sale would not be entitled to that commission. On the other hand, if an employment agreement or company policy states that an employee is entitled to a commission for any sales that they have initiated or contributed to, then an employee who is terminated before a sale is completed may still be entitled to a commission if they can demonstrate that they played a significant role in the sale.
In the event of a dispute, it is ultimately up to a court or arbitrator to determine whether an employee is entitled to a commission under the specific circumstances of the case.
Employers must also ensure that they comply with the California Labor Code’s requirements for commission agreements, including providing a writing outlining the method by which the commission is computed and paid, and obtain a signed acknowledgement from the employee.
Essentially, California employers are legally required to pay earned commissions to employees within a reasonable time after they become due and payable, but whether an employee is entitled to a commission if they are terminated before a sale is completed depends on the specific terms of the employment agreement or company policy regarding commission payments. Employers must also ensure compliance with the California Labor Code’s requirements for commission agreements.
Again, these matters are complex. If you think your former employer may have violated the law by not paying you a commission you were owed, review your case with a California unpaid commissions attorney. Get started today by contacting The Kaufman Law Firm online or calling us at 818-990-1999.