Is it legal for an employer to refuse to pay commission on a sale?

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Is it legal for an employer to refuse to pay commission on a sale?

My employer removed my name from a sale and replaced it with another salesperson’s name. The other salesperson had no involvement in the sale. He met the customer after the sale was made. The customer called my employer and asked that the commission be given to the other salesperson approximately 2 weeks after the sale was made. Merchandise had not yet been delivered to the customer but was paid for at time of sale.

Asked on July 22, 2011 New Jersey

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It may be a breach of contract if the employer refuses to pay you the commission off of a sale you made. You need to review your paperwork and see what it says in terms of salaries and commissions. It doesn't matter what the buyer wants, as long as you were the one who worked on it and not the other salesperson, you would be the one to get the commission. To do so, could be theft of your commission by the other salesperson and breach of contract or at least discrimination by the employer. Whether it is legal or illegal based on state employment laws, you need to contact your state's department of labor to find out whether it covers or regulates commission type jobs.


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