Commission in California
agunter2
10 Posts
I have an employee who was laid off on Thursday of last week and was paid for her time on that day, she was not paid for her commissions at that time due to the fact that they were not earned yet.
Let me give you some information first...We are a mortgage company that has been losing money for that last five months, there has been 2 sequences of lay offs. We have an office in Oregon and California. We are down to 3 loan processors in OR and 1 in CA. All employees signed a bonus structure that requires them to make at least $30,000 per month to receive any bonus/commission amounts. Employees must meet this for referrals and regular loans. This has been the same practice since this employee has been here (for about 6mo).
Now that we have let the 1 employee in CA go, she is filing a claim that we did not pay her the commissions owed to her when she was let go. Our position is that she has not made her $30,000 required amount at that time. We did write her a letter offering her 75% of her referrals upon closure of the loans and $50.00 per unit closed in the month of Jan. out of good will of our company. Otherwise, with her not meeting her $30,000 quota, she would not have received any amount at all. The question is...we did not give her the 75% or $50.00 at time of departure, because her deals had not closed yet, then she states she has filed a claim with CA, stating we did not follow CA law and pay her what was owed to her at time of departure. I need to know if we owed her that commission/bonus at time of departure even though it was not earned yet.
Thanks,
April
Let me give you some information first...We are a mortgage company that has been losing money for that last five months, there has been 2 sequences of lay offs. We have an office in Oregon and California. We are down to 3 loan processors in OR and 1 in CA. All employees signed a bonus structure that requires them to make at least $30,000 per month to receive any bonus/commission amounts. Employees must meet this for referrals and regular loans. This has been the same practice since this employee has been here (for about 6mo).
Now that we have let the 1 employee in CA go, she is filing a claim that we did not pay her the commissions owed to her when she was let go. Our position is that she has not made her $30,000 required amount at that time. We did write her a letter offering her 75% of her referrals upon closure of the loans and $50.00 per unit closed in the month of Jan. out of good will of our company. Otherwise, with her not meeting her $30,000 quota, she would not have received any amount at all. The question is...we did not give her the 75% or $50.00 at time of departure, because her deals had not closed yet, then she states she has filed a claim with CA, stating we did not follow CA law and pay her what was owed to her at time of departure. I need to know if we owed her that commission/bonus at time of departure even though it was not earned yet.
Thanks,
April
