Q: Can my Utah employer withhold my earned commissions if another company is taking over?
The parent company of my employer (we are a subsidiary) notified us employees 3 days ago (the 4th) that April 1st a new company will take over the operations of my employer and we will all be let go. I'm a recruiter and have a base+quarterly commissions structure. I have people I hired and usually get paid commission on starting throughout this whole month but my employer said they are only paying commission for hires that started Jan/Feb. Is this lawfully allowed? I am still continuing to get my regular base salary through the 31st but they won't pay me commissions on people starting prior to the that date. Is that legal since they will be starting before the date the company is transferred and I hired them? I do not have an employment agreement and nothing in our handbook explains any of this.
EDIT: In response to your question; no, none of my hires are being let go, and they are starting their job as usual.
A: Are your new hires also being terminated? If not, and the hiring process is completed, then you have done everything you need to do to earn the commission. Depending on how the new operation is structured, you might have to collect your commission from your old employer, the new company, or the parent company. You may want to contact the Utah state labor commission for assistance.
1 user found this answer helpful
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
