Many employers pay sales commissions to employees, particularly in industries such as real estate, financial services, pharmaceutical sales, car sales, or other sales-related fields. In a strong economy, commission plans benefit both employers and employees, however, when the economy weakens, disputes over commission payments often arise.
Often these disputes arise when an employee leaves a company before a commission payment is made. Whether an employee may receive a commission payment after leaving a company depends on several factors, including the plan’s provisions regarding when a commission is earned or accrued, the circumstances surrounding the employee’s departure (such as whether the employee was terminated for cause), and whether the employer typically pays commission payments to departing employees.
An employee who is denied a commission payment may be able to recover the payment by pursuing a breach of contract claim against the employer. If the employee prevails on this claim, Texas law would allow the employee to recover reasonable attorneys’ fees, court costs, and interest.
If you would like to speak to an employment law attorney about unpaid commissions or another employment-related matter, please contact the employment lawyers at Clouse Dunn Khoshbin LLP at [email protected].
