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when is commission earned
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when is commission earned
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I have a recruiter working for me. She has a written contract which says that commission (fees from placements she makes) are not earned until the customer pays. It also says that for her to get paid,
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Forums » Topic Forums » Legal Forum » when is commission earned
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when is commission earned
posted at 7/19/1999 1:00 AM EDT
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Posts: 1
First: 7/19/1999 Last: 7/19/1999 |
I have a recruiter working for me. She has a written contract which says that commission (fees from placements she makes) are not earned until the customer pays. It also says that for her to get paid, she must be employed with us when we receive the funds from the client. Today she quit (voluntarily) and wants commission on 3 placements that have been invoiced by the company, but not yet paid by the client. In two of the cases, the candidates have not yet started work. While there is little to no work left to do except wait for payment from the client, her contract clearly states commissions are not earned until we receive payment (which will not occur until after her last day with us). We are a california company and the work performed was in california. Do we have to pay her? |
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when is commission earned
posted at 7/19/1999 4:53 PM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
Not unless there's something in California's wage-&-hour rules, or perhaps that she wasn't on straight commission were she'd have worked for nothing.
I'm on the other coast, but had a similar situation with a separated salesperson with a contract describing commission payments, which were payable on client's payments and only if this salesperson was still employed. A complaint was lodged with the DOL and was thrown out based on the agreement. |
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when is commission earned
posted at 7/20/1999 6:05 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
While I'm not familiar with California state law on this issue, I can see some possible issues. It may be that your recruiter's commissions are "wages" and therefore must be paid within a certain time of when they are "earned." Notwithstanding your contract which asserts that commissions are not earned until the customer pays, California law could take a different view. Also, any minimum wage problem if the recruiter is denied these commissions? |
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