Can employer refuse to pay commissions after last day of employment?
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Can employer refuse to pay commissions after last day of employment?
I work as a sales consultant and receive a set
commission amount once a sale has gotten
released. If I have Sales that are pending
release after my last day, does my employer
have to pay me? I live and work in IN but my
employers corporate office is in KY.
Asked on May 12, 2018 under Employment Labor Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Commissions are governed by the agreement between you and the employer. That agreement can be in writing; it can be an oral (unwritten agreement); or it can be demonstrated by past practice (what the employer has done previously). It would be legal to have an agreement under which you are only paid for sales completed, not pending, as of your last day, or where you must be employed when the commission is paid in order for you to be paid, just as it conversely would be legal for you to be paid for commissions on sales you worked on while still employed, even if they were not complete when you left work. There is no answer about this set in the law; it depends entirely on the nature and terms of the commission agreement.
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