Forfiture of commissions upon voluntary termination

In Texas, is an employment agreement provision calling for the forfiture of earned but unpaid sales commissions upon voluntary termination of employment legal? Specifics: Texas work-from-home rep of California mortgage lender is paid a commission aproximately 3-4 weeks following the last day of a month for that month's production (closed, funded, completed loans). The sales are one-time events, not continuing service contracts. Company intends to withhold earned, unpaid commissions from prior month when rep quits before payday. Could salary be forfited the same way? Thanks!

2 answers  |  asked Jul 6, 2002 4:32 PM [EST]  |  applies to Texas

Answers (2)

Margaret A. Harris
When entitled?

I agree with Trey that it depends on the precise agreement. It seems to me though that under your agreement you were already entitled to those payments, and that they should have been in that last paycheck. The Texas Workforce Commission is often helpful in collecting earnings that an employer wrongfully withholds. But, before you go to the TWC or consult with a Texas lawyer, I suggest that you get a referral to a California attorney. Generally speaking, employees have much more legal protection in California than they do in this state. Sad, but true. Good luck!

posted by Margaret A. Harris  |  Jul 6, 2002 5:23 PM [EST]
Trey Henderson

Depends on your agreement. What was the initial agreement? If this was not originally addressed you may be due the commissions.

posted by Trey Henderson  |  Jul 6, 2002 5:14 PM [EST]

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