If I’m a 100% commission employee and I resign, what am I entitled to in final paychecks?

I am a 100% commission sales representative within an organization where I am currently paid commission on advertising and sponsorships. I have booked contracts through the end of next year. After completion of my 2 weeks notice, how much of my future commissions do I have right to?

Asked on September 9, 2011 under Employment Labor Law, New Mexico

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There is no general, one-size-fits all answer: it depends entirely on the terms and conditions under which your commissions were paid. For example, some companies pay all commissions earned before termination or resignation; other companies require the employee to still be employed as of the date the commission check would normally be paid (e.g. if commissions are paid quarterly, if an employee leaves before the payment date, he loses the quarter's commissions). Almost any arrangement is legal, so the issue is exactly *what* was the arrangement? Whatever it was--however and whenever you were paid while employed--the same conditions or terms will apply now. So if the policy was that you do not need to be employed on the date the commissions are paid to receive pay for them, you are entitled to be paid for them.


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