Commission Agreements

Commission agreements often represent a healthy portion of your overall income, and it’s never acceptable for an employer to utilize underhanded tactics to pay out a lower commission than you’re owed. If you are an executive employee dealing with commission disputes in California, you have rights under state law that protect your earnings. Commission issues can arise in various forms, including disputes over the calculation, payment, and timing of commissions, and it’s vital that you understand your rights and the legal avenues available to you. To learn more about how you can recover commission payments you were rightfully owed, reach out to Kesluk, Silverstein, Jacob, & Morrison.

California Labor Law on Commissions

Under California law, commissions are defined as any ancillary compensation paid to employees according specifically to the amount or value of sales made. For executives, commissions can form a significant portion of their overall compensation package. It is essential to ensure that these agreements are clear, fair, and legally compliant.

In California, employers are required to provide employees with a written commission agreement if any portion of their compensation is based on commissions. This agreement must be set in writing and should clearly and concretely detail how commissions are calculated, when they are earned, and when they will be paid.

If you do not have a written commission agreement, or if your employer fails to adhere to the terms specified, you may have grounds for a legal claim. In some cases, an argument can be made that you and your employer entered into a verbal commission agreement. Our experienced attorneys can help you understand the details of your case.

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Common Commission Issues Faced by Executives

Unfortunately, it’s all too common for executive employees to encounter various issues related to their commission payments. Some of the most common problems one might run into include the following:

Disputes Over Calculation

These can arise when there is a disagreement about how commissions are calculated, including the interpretation of performance metrics or sales targets.

Non-Payment or Delayed Payment

If your employer has failed to pay your commissions on time or has been withholding payments altogether, we can help you file a claim.

Improper Deductions

Employers are not allowed to make unauthorized deductions from your commission payments. Doing so could put them at risk for legal action.

Termination and Commissions

In some cases, there are disputes over whether commissions are owed after an executive has left the company, either voluntarily or involuntarily.

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Legal Protections for Executives

California provides robust legal protections for employees, including executives, to ensure they are fairly compensated. Under the California Labor Code, commissions that have been earned and are calculable must be paid, even after an employee has been terminated. Additionally, employers cannot make deductions from commissions unless explicitly authorized by the written agreement.

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Steps to Take in Commission Agreement Disputes

If you are facing issues with your commission payments, consulting with a knowledgeable employment attorney can help you understand your rights and the best course of action. One of the experienced Los Angeles commission issues attorneys at Kesluk, Silverstein, Jacob, & Morrison can provide the guidance and support needed to resolve your dispute.

  1. Review Your Commission Agreement: Carefully review your written commission agreement to understand how your commissions should be calculated and paid.
  2. Document Everything: Keep detailed records of your sales, performance metrics, and any communications with your employer regarding your commissions.
  3. Seek Legal Advice: Contact an employment attorney to discuss your situation and explore your legal options.
  4. File a Claim: If necessary, your attorney can help you file a claim with the California Labor Commissioner or pursue litigation to recover your unpaid commissions.
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Why Choose Kesluk, Silverstein, Jacob, & Morrison?

For more than 30 years, our firm has been dedicated to supporting employees and executives in complex employment disputes, earning ourselves a proven track record of securing favorable outcomes for our clients. We understand the nuances of commission issues and will work tirelessly to ensure you receive the compensation you deserve. If you are an executive facing commission issues, contact a Los Angeles commission issues attorney at Kesluk, Silverstein, Jacob, & Morrison today. We offer free initial consultations to help you understand your rights and determine the best course of action.

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