Define: Commissions

A: A commission is a fee or percentage of a transaction’s value that is paid to a salesperson or agent for their services in facilitating the sale.

A: Commissions are not legally required unless there is a contractual agreement between the parties involved that specifies the payment of commissions.

A: Generally, an employer cannot unilaterally change the commission structure without providing notice and obtaining the agreement of the salesperson or agent, unless otherwise specified in the employment contract.

A: Yes, as long as the employee’s total compensation, including commissions, meets the minimum wage requirements set by federal, state, or local laws.

A: Employers can only withhold commissions if there is a valid reason, such as a breach of contract or failure to meet performance targets, as long as it is clearly stated in the employment agreement.

A: Yes, if an employer fails to pay commissions as agreed, the employee may have legal recourse to recover the unpaid amount through legal action or by filing a complaint with the appropriate labor agency.

A: Generally, an employer cannot retroactively change the commission rate for completed sales unless there is a clear provision in the employment contract allowing for such changes.

A: Yes, if the employment agreement or company policies clearly state that failure to meet commission targets can result in termination, an employer may terminate an employee for this reason, as long as it does not violate any anti-discrimination laws.

A: It depends on the terms of the employment agreement or any applicable laws. Some agreements may provide for post-termination commissions, while others may not. It is advisable to review the specific terms of the agreement or consult with an employment attorney to determine the rights and obligations regarding post-termination commissions.