What is the law regarding aalary and commission payout after resignation?
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What is the law regarding aalary and commission payout after resignation?
I am resigning a position at a company in Kentucky that pays partially on commission, remainder on salary. Currently I have several business accounts where the service has been completed but they have not paid, and normally will not pay for a certain number of days, until after my last day based on their accounting SOP eg. Net 45. The company considers it an
Asked on March 26, 2019 under Employment Labor Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Actually, the law does NOT have an answer about commission payouts. Salary and wages are governed by law, but commissions are governed only by "contract"--by the "agreement" or arrangement between the employer and employees, whether written or oral, as to the payment of commissions. If there is no explicit agreement, the agreement--the terms that the employer and employee both worked under--can be found from the employer's policies and practices: that is, what they have done in the past can be used to determine what the rules for commissions are. If your company's policy is that if you must be employed when payment is received in order to receive a commission, that is legal--in this case, you would not get a commission past your last employment date.
As to salary: you have to be paid your salary for all work done up to the last day you worked, even if the check, etc. comes to you after the last day.
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