Commission Pay after Termination?

[ffwilson]

I worked in Tennessee for a company headquartered in Georgia.

I was hired 9 months ago when they opened a new sales office and signed an employment contract which states commission rate for 2001 and 2002 based on sales in the new territory. In December, we entered into an agreement with a third party for new product sales that should generate considerable revenue for 2002. Two weeks after the agreement was made (final contract not yet signed by home office), our sales office was closed and my job terminated. I feel the office was closed simply to prevent commission payments.

Do I have any recourse for receiving 2002 commissions based on contract signed in April 2001?

 

[cbg]

This will depend upon state law and the exact wording of the contract. But if the sales office is closed, what sales will there be for which commissions can be earned?

 

[ffwilson]

Clarification

What I am trying to say is that I located a customer, defined their need for a new, custom product, wrote specifications for that product, then set up a meeting with me, the customer, and the home office to discuss development and manufacturing of that product.

After the 2nd meeting (where a prototype was delivered, final specifications approved, and pricing guidelines discussed but not finalized), the Tennessee sales office and my employment was terminated "due to lack of sales". This customer account is now being handled directly by the home office.

I estimate that my ex-company will generate between $500k-750K in sales during 2002 with the customer I located. By terminating my employment, they are saving between $25K-40K in commissions based on my employment contract.

 

[cbg]

You're going to have to check with the Wage and Hour division of your state DOL.