Commission-based employment is common in many California industries. In general, it is meant to be an incentive for workers who are selling a product or service. When they make a sale, they will receive a portion of the price. For example, an automobile salesperson would earn a percentage of the value of a car they sold.
Despite its advantages, people who work on commission could be vulnerable to wrongdoing by their employer. Perhaps the employer did not make an accurate accounting of what the worker was owed. The worker might have been terminated and was not paid a commission they were entitled to. With these and other situations, people need to understand the law and ensure they are paid what they expected.
People who earn commissions have rights
If an employer asserts that an employee who earns commission has forfeited their right to that pay, it could be a legal violation. Despite that, there are circumstances where the contract the employee has with the employer will need to be scrutinized to determine whether they should receive the payment.
Contracts are assessed on a case-by-case basis. Some contracts have a forfeiture provision that could prevent the employee from receiving what they claim they are owed. If the contract states that the employee will not receive a commission for an account after a certain amount of time after they have left the job, they might not be entitled to it.
Employees who are terminated must be paid commission they were owed. An employee who quits and does not give sufficient notice will still receive their commission wages within 72 hours of when the employer-employee relationship was ended. Employers who claim that quitting means the employee will not receive the commission are violating the law.
Fight against employers who try to avoid paying commissions
People who work in industries that rely on commission-based pay can increase their income significantly with hard work and skill at selling the company’s product or service. If they are not paid according to their contract or there are other disputes such as the agreed-upon percentage not being given to the employee, it is important to know what can be done.
This is a form of unpaid wages and employees have the right to lodge a claim to get what they are owed. When doing so, it is imperative to understand the details of the contract and how the law addresses their concerns.