Am I entitled to commission after I quit for business I’ve invoiced before leaving ?
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Am I entitled to commission after I quit for business I’ve invoiced before leaving ?
Hello, I work in New York City and my salary consists of a base + commissions; these commissions are percentages (tiered and increasing depending on values we bill) of each deal that we close. We are paid our commission at the end of the month following our company’s receipt of invoices.Our exact commission is determined by individualized spreadsheets that calculate the amount we’re owed as a function of monthly billing. Additionally I have a contract spelling out baseline commission amounts (from my initial hire)I am considering resigning, and if I do I will have a) deals closed with invoices raised that we have yet to be paid on and b) invoices paid and received by my company that I will yet to be paid on.I will be resigning in good standing and am not going to a competitor (not even staying in my current industry) – What are my rights to my commission for the deals I’ve closed ? (and are there any differences between (a) and (b) as outlined above ?Also, my company has merged with a sister company and has a new name / entity than what is on my contract – does this change things at all ?Finally – if I am legally entitled to money and am not paid – how difficult will it be for me to seek redress?Thanks very much for any guidance and insight that can be provided in this matter.
Asked on March 16, 2012 under Employment Labor Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The terms of your entitlement to a commission after you quit the busienss that you are presently doing work for depends upon what your presumed written commission agreement states. As such, I recommend that you read it carefully in that the agreement should spell out the answer to your question in that it would determine your obligations to the person you work for and vice versa as to any deals that you have closed but have not received compensation for.
My sentiment is that you should be entitled to your commissions when payments under the contracts that you closed have been paid.
The merger of the two companies would have no effect upon what is stated in ypur presumed written commission agreement. If you are not paid what is owed you in a timely fashion, your redress would be either through small claims court, consultation with an attorney or making a complaint with the labor department. The difficulty in getting what you feel you are entitled to depends upon how difficult the entity that owes you money wants to be and how diligent you are in seeking what you feel you are entitled to.
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