Help please: Commissions payable upon employment termination?

[LeftyFingerPop]

Does anyone know what reasonable recourse a terminated employee would have against their former employer if a substantial commission check was withheld from the terminated employee?

Facts...

A signed commission agreement does not exist.

Employee was terminated because of the closing of a business segment.

Any insight at all is greatly appreciated. Thank you so much in advance.

[Raven]

1. Oh shit! No Commission Agreement? Did you have an Employee Handbook?

Some employee policy on that? I just went through a lot of this with a friend and I realized how much I don't know about employment law. It is pretty specialized. Do you belong to a Union? There is a common law theory called "quantum meruit" which means essentially that you pay the person for services rendered. I don't know if that will help but I would threaten suit and hope for the best if there is nothing in writing. Also check your state's laws...maybe there is something there to cover this.

[LeftyFingerPop]

2. Thank you...

This happened to a friend, not myself. I'm a little concerned...the company is run by a rather shady bunch.

There is a handbook, but it does not address commissions.

Commission structure was verbally agreed to upon hire, and was continued throughout employment.

Thanks Raven.

edit spelling

[Tangerine LaBamba]

3. Have your friend gather

all the documentation he has regarding commissions - does he have copies of the checks he got in payment of commission? Does he have anything marked "commission" that would indicate that such were an integral part of his remuneration.

How about his taxes - were they broken down into salary/commissions?

Without any paperwork, it's a matter of his word against the employer. Why is this money not being paid? Just a regular old ripoff?

But, if he can create a paper world and show a pattern of payments that really were commissions - for instance, vast disparities in his income from month to month - that could be interpreted as a commission agreement.

Good luck to your friend.

[LeftyFingerPop]

5. Thank you. Yes, she will be able to establish that commissions...

were indeed the majority of her compensation.

[Th1onein]

4. NO, they can't withhold it unless they state a reason for doing so

in the employee handbook, and the employee continues to work there after having been given the handbook.

Tell your friend that he can not only sue, but that he can sue and they will have to pay the attorney's fees, depending on the state that he lives in.

[LeftyFingerPop]

6. Very good. thanks so much. would the labor board be able to guide her? n/t