Do my commissions get paid if I’m let go by my company?
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Do my commissions get paid if I’m let go by my company?
I was hired in an outside sales position with a base salary and quarterly commissions. Last month I was placed on a PIP (Performance Improvement Plan), basically a warning that I might be let go. I asked my HR dept that if I was let go before all my commissions were paid
out, would I be paid my commissions and she stated no and that I had to be employed with the company when commissions were paid. I asked a co-worker and they said that was incorrect and that it is called
Asked on July 5, 2016 under Employment Labor Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Your friend is wrong: it is legal to require employees to be employed as of when commissions are paid to receive them, even if they were "earned" earlier, and if you signed an agreement acknowledging that you would have to be employed to receive commissions, then you contractually agreed to this and your employer can hold you to what you signed and only pay you commisions is you are employed when they are to be paid.
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