Salt Lake City, UT asked in Employment Law for Utah

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.

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1 Lawyer Answer

Michael C. Smith

Answered
  • Provo, UT
  • Licensed in Utah

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

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