Un-paid commissions in NY

[star-trekkor66]

I currently work for a company in New York. The commission structure was changed this past September. We were originally getting paid commissions on sales the month following the sale but now, we must sell a certain number of units per month in order to get paid. If we didn't make the monthly quota (due to lack of sales, customer cancellations, etc.) our commissions would be held until February 2001. To make matters worse, we were given a quota to reach by the end of the year and if we do not reach the assigned quota by 12/31 then all of our held commissions would be forfeited. Now that December is here and sales are traditionally slow, 95% of the sales force (including me) is facing losing their commissions. I have started investigating other employment and was told that if I leave the company, I will lose all rights to the commissions and will not recieve the commission due from last month (which I made my monthly quota). Is this legal? This has caused great financial hardship on me and several of my co-workers and we are starting to talk about class-action law suits. Is that a good idea?

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

As to leaving the company before pay out and not getting paid -- this is legal and it is called an incentive (to sell and stay).

As to commissions already earned and when should be paid:
http://assembly.state.ny.us/cgi-bin/claws?law=54&art=8


This is a part of it:

c. Commission salesman.--- A commission salesman shall be paid the
wages, salary, drawing account, commissions and all other monies earned
or payable in accordance with the agreed terms of employment, but not
less frequently than once in each month and not later than the last day
of the month following the month in which they are earned; provided,
however, that if monthly or more frequent payment of wages, salary,
drawing accounts or commissions are substantial, then additional
compensation earned, including but not limited to extra or incentive
earnings, bonuses and special payments, may be paid less frequently than
once in each month, but in no event later than the time provided in the
employment agreement or compensation plan. The employer shall furnish a
commission salesman, upon written request, a statement of earnings paid
or due and unpaid.


You now have the law behind you! Got get'em tiger!

 

[star-trekkor66]

Thanks a lot Lawrat

Lawrat...you rule!! Thanks a lot for this info. Now I feel as if I have a fighting chance at getting some of the money that is owed to me!