What can I di if I was asked to resign and now my outstanding commissions are not being paid?

UPDATED: Oct 1, 2022

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What can I di if I was asked to resign and now my outstanding commissions are not being paid?

I was asked to resign from my position as a commissioned sales rep. At the time of separation, I had about $4,000-5,000 of commission that had not been collected, therefore, not paid. The company is saying that because they now have to work on collecting those outstanding balances, I am not owed anything. I’m thinking that’s unfair

Asked on August 24, 2018 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It depends on what the practice, customs, or policy has been at your employer regarding commissions after employment ends. The law does not specify any particular treatment for commissions: it is legal to pay them after employment ends; and it is also legal to not pay them--that is, to require that employees be employed at the time commissions are paid out to receive them. If there is a commission or employment agreement which states how commissions are handled in this situation, follow it; if not, but there is an employee or policy manual addressing the issue, follow it; if no agreement or manual, look to what has happened previously when employees left being owed commissions--the law would look to what has been done before as showing the company's policy. If no past practice, look to industry norms--what is generally done in your industry this situation regarding payment of commissions--since if you were to sue for the money and there was no other guidance, the law would typically look at the expectations formed by how your industry operates to see what the rule should be.

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.

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