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Employer makes commissions owed discretionary after resignation

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Almost Jones

Junior Member
What is the name of your state (only U.S. law)? Massachusetts

I have just resigned from my current software sales position. I am still owed substantial prior commissions from Q4 of 2013. My employer presented my Q4 earnings verbally and in a written email/spreadsheet format back in January. He was clear that these were my earnings (on 6 closed deals) and they will eventually be paid out to me. Of note, is that the company is not doing well financially and has asked all employees to wait until mid-year for the catch-up commissions to be paid in-full.

Yesterday, when reviewing my final payout, I was told that the company is now taking away 4 of the 6 deals stating I was not directly involved in these sales and thus would not earn commission on them. My question is whether or not this is legal as the earnings were already formally presented to me back in January. In addition, there is nothing in my commissions plan pertaining to "discretion". It states I am to earn a specific % on all North American sales revenue. Whose side is the law on in this situation?

Much obliged for any feedback.
 


cbg

I'm a Northern Girl
It has been about 15 years since I had to know anything about commission sales in MA so I cannot guarantee that the law is still the same in 2014 as it was in 1999. However, in 1999 you would have to have been paid commission on any sales that you closed. Any sales that you may have initiated but were closed by someone else after you left, no matter how much work you may have done on them, would belong to the person who closed them. Anything beyond that you were due, would be a matter of your contract agreement.

It certainly can't hurt for you to raise the issue with the state DOL if you and your employer are unable to come to an agreement as it sounds as if you might, by law, be due more than the employer is willing to provide.
 

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