Under what circumstances can the payment of a commission be delayed?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Under what circumstances can the payment of a commission be delayed?
My husband was due his commission from last year this past month, his company now says they will not pay until they see if the US Government is shutting down. This even though his sales were in 2010 and his company made money in 2010. Additionally, my husband’s sales were commercial not government contracts. Is this legal?
Asked on March 16, 2011 under Employment Labor Law, Virginia
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
It sounds as if the company doesn't have enough accounts receivable to make up for the accounts payable. If your husband was a due a commission from 2010 and it is owed to him in March, and the company is not paying, your husband needs to do a couple of things. First, check his employment agreement with the company about such companies and how long the company has to pay them. If the contract is silent, one has to look at law, case law and also what a reasonable time period would be in his situation. If he is an employee (so has an income via salary or hourly in addition to commission), he should file a complaint with the Virginia Department of Labor. If he is not, he should make an appointment to talk with the local, state or federal prosecutor's office to help get this straightened out. I say this because if the company also handles government contracts, the company has to meet strict guidelines that include factors like financial health.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.