Q: Hello, I am a commissioned sales person in California. What are my rights regarding how quickly commissions paid?
I take a draw on my commissions, but my sales far exceed the draw. The excess amount is still owed to me from 2021, and I am waiting for final payments to be resolved. A number of payments have been distributed over the course of this year, but am still waiting the final commissions from 2021, putting that close to a year from the original sales. An agreement is in place regarding commissions being paid after accounts are settled and that payment will be made the following sales year, but this is dragging out and my employer states they cannot pay sooner because of cash flow.
A:
The written commissions agreement will govern your payment terms. If the employer is not acting consistent with the provisions of that agreement you would have a legal claim. If the employer is not yet acting inconsistently with the terms of the commissions agreement, you do not have a legal claim.
Failing cash flow is not a defense to violation of a contract provision. However, you need to be concerned about an employer that cannot afford to pay its people. It might be time to start looking for a more solid employer.
Good luck to you.
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