Commissions - are they payable after termination.

With no definition of what happens to commissions after an employee is terminated in their contract, there is no other employees who receive payment of commissions once terminated. Is the precendent enough to stand on when terminating a commissioned internet marketing staff member?

1 answer  |  asked Mar 19, 2012 06:54 AM [EST]  |  applies to North Carolina

Answers (1)

Reagan Weaver
The statute that applies to this question is reprinted below:

N.C.G.S.A. § 95-25.7
§ 95-25.7. Payment to separated employees
Employees whose employment is discontinued for any reason shall be paid all wages due on or before the next regular payday either through the regular pay channels or by mail if requested by the employee. Wages based on bonuses, commissions or other forms of calculation shall be paid on the first regular payday after the amount becomes calculable when a separation occurs. Such wages may not be forfeited unless the employee has been notified in accordance with G.S. 95-25.13 of the employer's policy or practice which results in forfeiture. Employees not so notified are not subject to such loss or forfeiture.

N.C. Gen. Stat. Ann. § 95-25.7 (West)

If you can show that you had done everything to earn the commission and the employer cannot show that they had a forfeiture policy, you should be able to go after your commissions. You can file a complaint with the NC Dept of Labor or you can hire counsel.

posted by Reagan Weaver  |  Mar 19, 2012 07:12 AM [EST]

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