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How do I collect unpaid commissions from a job that I was terminated from?

How do I collect unpaid commissions from a job that I was terminated from?

Q: How long can a company withhold commission?

The length of time a company can withhold commissions often depends on the terms of your employment contract and state law. Generally, if payment is promised in writing, it should be made by the agreed date. If it exceeds that timeframe without valid reason, you may have grounds to take action to recover the unpaid amounts.

Q: How long can a company hold commission?

A company can hold commissions only for as long as specified in your employment agreement or company policy. If there is no clear timeframe, it is advisable to seek payment promptly after termination. If delays occur, you may need to take steps to recover the owed commissions.

Full question:

I was terminated from my job in Aug '07. I was told that I would be paid for all outstanding commissions through the end of September '07. (in writing) I have made two attempts to contact my previous employer regarding my now "unpaid" commissions. What do I do now? It is now nearly 6 months past-due.

Category: Misc
Date: 04/07/2025
State: California

Answer:

Please see the following form as an example:

http://www.uslegalforms.com/nj/NJ-KB-015.htm

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

When should commissions be paid out after termination or resignation?

Typically, commissions should be paid out according to the terms outlined in your employment contract. Many employers specify a timeframe for payment after termination, which can vary by company policy or state law. If you were promised payment in writing, as in your case, you should expect to receive it by that agreed date. If not, consider taking further action as outlined in your main inquiry.

Can a company make you pay back commission?

In general, a company cannot require you to pay back earned commissions unless there is a clear agreement stating otherwise. If the commission was earned based on your sales or performance prior to termination, it typically remains yours. However, if there are specific conditions in your contract regarding chargebacks or returns, those may apply.

How long can a company withhold commission?

How long can a company hold commission?

What are the specific laws in the US regarding sales commissions and termination of employment?

Laws regarding sales commissions and termination vary by state. Generally, if commissions are earned before termination, they should be paid according to the terms of your contract. Some states have specific laws governing the payment of commissions after termination, so it’s important to check local regulations for precise guidance.

What if a company doesn't pay commission?

If a company fails to pay your commission, first document all communications and agreements regarding the payment. You can send a formal demand letter requesting payment. If the company still does not respond, consider consulting an attorney who specializes in employment law or filing a claim in small claims court if applicable.