Payment of Commission To A Former Employee

glendolbrowder

I need help quickly! A non-exempt employee whose pay was made up of an hourly base rate plus commission on funds collected was terminated on a specific date. His hourly pay and his commission on all collections that posted through his termination date was paid in his final check. Is the former employee entitled to commission on funds that he made payment arrangements for that posted after his termination? I believe that he would be entitled in California but this location is in Georgia. Help please!!!

NaeNae55

What does your commission agreement say? Our incentive plan states clearly that the employee must be employed and that the fees must be received for our sales staff to receive their commission. Employees who terminate receive commission on any receipts that come in on or before their last day of work. If you don't have an agreement in place, someone from your state will have to help you. Anyone from Georgia know anything about commission laws there?

Lori B

I can't speak for GA law, but the general rule in most states follows the procuring cause rule. If ee "caused" the sale, ee gets the comm'n regardless of when it is paid. The way to avoid this: draft a commission agreement that clarifies exactly how and when commissions are deemed earned and payable. Good luck

Don D

Don't know what GA law will say, if anything; but, I come down on the side of fairness. If the employee's efforts caused the sale to come in, he should receive the commission on the sale, unless a contract is worded differently. Bonus's are another matter and generally require he be on board at the time of payout. There are usually always sales that finalize and generate commission's due after people leave aren't there?