A Guide to Sales Commission Issues

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Commission cases often involve disputes about the parties’ agreement. For example, commissioned employees often are hired on the basis of "on-target earnings" with a detailed commission plan to be determined later. When the plan comes out, the provisions may be different from the parties’ earlier agreement. Another example is when an employer changes the commission agreement during employment. Did the employers violate California law in these situations? The following concepts in California contract law influence a great many cases:

• An employer cannot rewrite the terms of the commission agreement once the sale or performance has been made. I have seen employers make changes to commission plan retroactive -- even after sales have been made. Generally, the courts will not abide this.

• When an employer reserves the power to make periodic changes to its commission plans, there are limits on its power: an employer cannot use its discretion to deny the employee the benefits of the commissions contract.

• If a contract can be reasonably interpreted to avoid forfeiture of an earned commission, a court is obligated to interpret it that way. This often arises when the commissions contract requires current employment for payment of a commission. I have used this principle in many cases.

• Courts place a lot more emphasis on the written terms of a contract than what many clients expect. Some people feel that the written terms are “fine print” that don’t matter. All the terms of a written agreement are considered.

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Harris & Kaufman is a California law firm that's dedicated to representing employees in disputes against their employers regarding California State sales commission issues. Our lawyers can assist you if you believe that your employer has broken the California Labor Laws.

Our employment attorneys are experienced and have had numerous trials, arbitrations, and appeals and have litigated on behalf of thousands of employees.

Harris & Kaufman has represented workers in state and federal court and in administrative proceedings before the California Labor Commissioner. Determined and aggressive, our cases include individual disputes and class action lawsuits.

We can assist you with a wide variety of workplace disputes to do with the California harassment laws. We are aggressive and experienced lawyers and can help enforce your rights under California state law or state regulations. Based in Sherman Oaks, California we serve greater Los Angeles, Orange County, Ventura County and have cases statewide.

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