Length of time to request overpaid commissions
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Length of time to request overpaid commissions
After 2.5 years of leaving a company where I was paid on a commission basis, they
are now requesting that I repay overpaid commissions. Nothing was mentioned or
requested when I gave notice or when my time there ended.
What is the length of time that a company can come back and ask for overpaid
commissions? It just seems odd to wait so long to request.
Asked on October 1, 2017 under Employment Labor Law, Minnesota
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
They have up to four years to do this. Or, more accurately: they could always "ask" at any time, even decades later--anyone can ask for anything any time they want. But they typically only have four years to take legal action (i.e. sue for the money) if you don't pay; after four years, they have no way whatsoever to back-up or enforce their request. The reason they typically have four years is that in most cases, there is not a firm written contract for the commissions, only an oral agreement; in those circumstances, the lawsuit would have to be brought within the "statute of limitations," or time to file a lawsuit, for an oral contractual dispute, which is four years in your state (MN). Note that if you did have a written commission agreement, they would get two extra years (six years total), since the statute of limitations for written contracts is six years.
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