Legal question... can anyone help?

Question

I recently left a job due to a move. My job involved sales, and I made a 5% commission on any print material I sold each month. I worked through Ocotber 17, 2007, and made $13,709.42 in print sales, which should be around $700.00 in commission. I had no contract with my employer-- nothing saying that I would or would not receive commission upon exit from the company. My former employer has now told me I won't be getting that commission. No reason why-- just an email from him, over a month later, saying that I'll get no further compensation from him, and good luck.

My question is this-- am I entitled to the money that I was told initially I'd get? I realize this is a long shot, and in the grand scheme of things, it's not a lot of money. But it seems that if you tell an employee 'This is what you'll earn', shouldn't it be paid?

Thanks in advance for any advice you can offer.

Thanks a bunch for your help, everyone. This commission is a small amount, but I feel like I'm being treated badly, so to me it's more about the principle. Anyway, thanks for all your advice!

Answer 1

I would think that previous commission payments paid to you would possibly set a legal precedent. You may have claim against your former employer for the commissions due based on this. Of course you already know you need advice from a lawyer, I would go with the suggestion above that you try and have an attorney send a letter for you. I would feel the same way as you do though, it's the principal of the thing. I would almost spend $650 to get the $700 from him, the jackass!

Answer 2

Okay, you say you didn't have a contract, but the fact is that you did have a contract, just not a written contract.

The problem with unwritten contracts comes when you try to enforce them, you can't prove exactly what the terms were.

One important term is the question of precisely when the commission is actually earned and becomes due and payable, and whether or not it is contingent on your being employed at that moment.

For example, let's assume that it is undisputed that you solicited the business in question, and remained employed there rather than having left. At what point is the commission earned? It could be, and probably is so, that the commission is not due until the order is actually accepted by the seller. In other words, if you went and sold 1,000 units of something that your company doesn't sell, you don't get the commission. If you "sold" 1,000 units but at half their cost, the order will be rejected and you get no commission. It is possible that the commission isn't even due until the order is actually paid for. So that's the first question, when would they actually owe you the money even had you stayed on.

Now, assuming we knew the answer to that question, we realize that it is entirely possible that a person could generate an order that results in a sale, and no longer be employed at the moment the commission becomes earned. Without a written contract, it's difficult to say exactly what happens then, as there are potential justifications for both answers, and different industries have different practices. It is possible that being liable to the initial order taker who leaves before delivery would have them liable for the commission to two employees.

You basically have two choices. One is to let it go and remember not to be so vague in your dealings with employers in the future, and the other is to sue in Small Claims Court.

If you go with court, I'd suggest taking the position that all you need to prove is that the orders were placed because of your efforts, and let the employer make his own case that it isn't due because the orders weren't filled, or your leaving justifies nonpayment. You might mention the fact that your leaving doesn't justify the customers not paying for the orders.

Answer 3

Sometimes commission isn't earned until the sales are final. And even then, they are not paid unless you are still employed at the end of the pay period in which the sales become final.

If you are not still servicing the account, then technically it may be considered a "house account" or have been given to someone else, and then either of those would have claim to the sales during that period.

If you have a career in sales ahead of you, you might want to keep that in mind for the next time, as it could be a lot bigger pile of money in the future.

Quitting any incentive-laden job involves future costs like this.

Answer 4

You probably are entitled to the money. It sounds like you have an oral contract and a course of business relationship to rely on to prove it. However, getting the $700 would cost you way more than $700, almost certainly.

If you can get a lawyer to write a decent demand letter for $50 or $100, you might be able to scare your former employer into paying up. If he ignores the demand letter though, I'd let it drop...

Answer 5

It sounds like you are entitled to this money. I would email the employer back (keep copies of all emails rec'd and sent) and let him know that if he does not honor the verbal contract, and be specific as to what you were entitled to, then you will be forced to take it to small claims court. It will cost you $45 to file the papers. I don't think the employer will want to take the time and energy to lose a day to be in court. If he does show, then you'll get your judgement.

Answer 6

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Answer 7

I'd encourage you to try a web search on small claims court to see if you think it's relevant. The laws may differ from state to state, though, so be sure to also look for the rules that apply to your jurisdiction.

Answer 8

Just go in there wearing that hat and he'll pay you the money out of fear...!

Also, seriously, you could try handelonthelaw.com.

Answer 9

KILL!
KILL!
KILL!