Percentage of Commissions with held

I have no contract, only a written agreement of what my salary and commission compensation would be when I started my managers job 3 1/2 years ago. My first year I was on a guaranteed salary/commission package. The 2nd year, they started with-holding 25% of my commission each month and is paid in lump sum after the year end books are closed (I was paid in 4/04 for commissions deducted monthly in 2003).I was never informed of this deduction prior to my second year. Nor is this covered in our handbook.
I would like to pursue another job, my question is, if I leave during November 2004, can they hold these commissions from me until 2005?

1 answer  |  asked Oct 19, 2004 9:02 PM [EST]  |  applies to Texas

Answers (1)

Margaret A. Harris
Changing Commission Structure and Payment

Yes, your employer might withhold those commission payments. It wouldn't surprise me. The company might even take the position that, since you left, it's not going to pay you those commissions at all. I'm not saying that the company would be right to do that, but it wouldn't surprise me if it did all it could to avoid paying you those monies. You would not be there, and the company could decide that it would rather spend the money elsewhere than giving it to a former employee. You would then have to go after the company -- hopefully with the assistance of the Texas Workforce Commission under the Texas Payday Law. Also, you should check your documents. I would be concerned that, when the company started withholding those payments until after the end of the year, there is going to be an argument that if you are not employed when those checks are paid you forfeit the commission. If you are still concerned, make an appointment with an experienced employment lawyer.

posted by Margaret A. Harris  |  Oct 20, 2004 06:14 AM [EST]

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