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Layed Off but Commissions Not Paid-Updated

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healthyallday

Junior Member
Below is my posting and some replies from yesterday.


What is the name of your state? I work and live in Massachusetts but my employer is based in North Carolina.

I am a sales person. I and several other sales person's were layed off as a cost reduction effort. We all have recent sales, where the product or service has not yet been delivered. We have been told that since we will not be employed during the delivery of the product or service, we will not be receiving our sales commissions for those products or services not yet delivered (even though the contracts are signed). Can they do this? Our commission plan does state that we must be still employed to recieve commissions, but we did not quit or get fired. While layoffs were not addressed in the commission plan, can they say that technically we are no longer employed and they do not have to pay our commissions? Thanks.



One reply below stated that since I work in Massachusetts, the MA law requires that I get paid on deals that I closed prior to my layoff. I am based in Massachusetts, but the deals I recently closed were in NY and NJ (and my company is based in NC). Does that change anything?

Below is my message and replies from yesterday. Thanks to all.
--------------------------------------------------------------------------------

What is the name of your state? I work and live in Massachusetts but my employer is based in North Carolina.

I am a sales person. I and several other sales person's were layed off as a cost reduction effort. We all have recent sales, where the product or service has not yet been delivered. We have been told that since we will not be employed during the delivery of the product or service, we will not be receiving our sales commissions for those products or services not yet delivered (even though the contracts are signed). Can they do this? Our commission plan does state that we must be still employed to recieve commissions, but we did not quit or get fired. While layoffs were not addressed in the commission plan, can they say that technically we are no longer employed and they do not have to pay our commissions? Thanks.

healthyallday

pattytx
Senior Member Join Date: Oct 2004
Location: Big City, MD
Posts: 1,241

If the commission plan does not specify that commissions are not paid if not employed at the time of payment, except if the termination was not voluntary, you're probably out of luck. Are you outside sales or inside sales? Do you receive any type of wage payment besides commissions?
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I may not be accurate, but I'm slow! Oh, and one other thing: If at first you don't succeed, destroy any evidence that you tried!

pattytx d

#3 Today, 07:19 AM
cbg
Senior Member Join Date: Nov 2001
Location: Massachusetts
Posts: 12,399

In MA, you must be paid commissions for any sales that YOU closed, regardless of when the employer is actually paid. They need not pay you for any sales for which you may have opened negotiations but someone else closed the sale after your departure, regardless of how much work you may have put into it, how soon after your departure the sale was closed, or the reason for your departure.
 


pattytx

Senior Member
Then it appears you have lucked out because you worked in MA. To my knowledge, most other states are not like that.
 

cbg

I'm a Northern Girl
I am based in Massachusetts, but the deals I recently closed were in NY and NJ (and my company is based in NC). Does that change anything?

No, it doesn't. If you worked in MA, MA law applies to you.

Just as a caveat, let me add that my initial answer was based on what I was told by the MA Atty General's office in 1999 or 2000 when I was negotiating the terms of a severance package between one of our employees and the CEO, who had wildly divergent ideas as to what was fair and reasonable. I am assuming that the law has not changed since then. The AG's Fair Labor and Consumer Line can tell you for certain.
 

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