Is it legal for employers to take sales from their own commissioned sales people?

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Is it legal for employers to take sales from their own commissioned sales people?

I work for a company as a commissioned sales person. We are assigned specific, geographical territories and receive leads from our company’s marketing team, national accounts division, as well as generating our own leads. In an effort to become more ‘competitive’ in a particular sector of our marketplace an on relatively high-dollar jobs the company, through the national account division, is not pushing the leads out to the sales people, and instead running them through a subcontractor, thus bypassing the normal process. This cuts the sales people out on opportunities, sales credit, and commission. This is a continuing trend within the organization and is setting a precedence for the future business development.

Asked on June 17, 2016 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

This is legal unless it is prevented by the terms of a contract, such as if you have an independent representative contract or a commission agreement which protects your territory(ies). Otherwise, without a contract to the contrary, the company is under no obligation to give yo the leads or not compete with you.


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