Can an employer not pay commissions because my client won’t pay their bill?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can an employer not pay commissions because my client won’t pay their bill?

My employer’s new policy is that

Asked on October 26, 2017 under Employment Labor Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Yes, this is legal. While an employer must pay base salary or wages whether or not the empoyer itself is paid, commissions are not protected the same way: the payment of commissions may be predicated on the customer paying since, after all, if the customer does not pay, there *was* no sale in any real sense and nothing to commission on. While many employers do it differently--paying the commission, but then "charging back" (debiting back; recovering from the employee) commissions on any bad debts--the end result is the same: the employee does not ultimately get commissions when the customer never paid. So what you describe is legal.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption