What to do if an employee paid commission on advance payments then quit before performing the work for which the commission was paid?

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What to do if an employee paid commission on advance payments then quit before performing the work for which the commission was paid?

The terms of my employment agreement with this employee was to pay him a commission when certain payments were received. Unexpectedly, some clients made some substantial pre-payments causing the commission to be paid. After receiving these commission payments, the employee unexpectedly quit before actually performing the services for which the prepayments and the resulting commission was paid. He has refused to return the funds which amount to several thousand dollars. I have had to return the entire amount of prepayment to several clients magnifying my loss. What to do?

Asked on August 29, 2012 under Employment Labor Law, Arkansas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to take the employment agreement to an attorney to review.  It sounds flawed, whcih I think that you know, and you know that you are going to have to sue him.  But no court would rely on the agreement if it ended up being unequitable or against public policy.  No Judge would allow some one to be paid for no work performed.  Get help.  Good luck.


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