Commissions while on FML

seeleyhr

Our Sales Representatives earn commission on sales. When a Sales Representative takes FML for birth of a child, how do other companies handle commission payments.

Does the commission stop on the first day of the FML when the rep is no longer able to call on customers and then start the first day that the rep returns to full time duty?

ritaanz

I am assuming that these commissions are on sales achieved prior to FMLA. Looks to me she earned it and should be paid her commission regardless whether she is on FMLA, vacation or terminated.

Christinet

I agree with Ritaanz. You have to be careful about reducing compensation (including commissions/bonuses), benefits, etc as a result of FMLA. We have a procedure where we can identify through the purchase order; 1.) Who made the sale (inside or outside); and 2.) When it was posted. This way we can track what the reps should be paid for commissions and bonuses regardless if they are on leave or not. Commissions and bonuses are paid quarterly. Reps on leave are paid for anything earned during the prior quarter along with all other reps (i.e. when commission checks are cut...not upon return to active duty). This has worked well for us, because I find reps are naturally concerned that they will not be paid this revenue if paid while on leave.