OT - Any lawyers specializing in Labor Law?

[turnlisa]

My DH just accepted a new job. As part of his old job, his pay was based on commissions for labor/parts and a salary. The way his company paid commissions was based on the company receiving payment from clients. Unfortunately, some of their clients are Chrysler who takes forever to pay.

Now that my DH is leaving he is still owed some money in commissions from outstanding payments from clients. When he asked if they could cut him a check, they said no - that until clients paid he would continue to get monthly commission reports and payments as the money was received. Is this legal? This means that technically we could be receiving money from this company for years and W-2s for just as many years. If you leave employment, isn't the company that you are leaving required to pay you any monies due by the next pay period? We live in Michigan and this is what we found on the Michigan site but we were wondering if this is right or is there a different rule around commissions. Any help would be appreciated before we get a lawyer involved.

 

[OntFamily]

I don't live in Michigan, but I used to work on 100% commission.

When I left that job, I received pay cheques for a few months, until those invoices I billed were paid.

Even when I was working for that company, I only received commission on paid sales (ie the sale wasn't complete until the invoice was paid). So, if the invoice isn't paid, the sale is not complete (and hence no commission). Technically, if the company I worked for wanted to get picky, I probably wasn't fully entitled to commissions after I left that job (as the sales wasn't complete - ie paid -- when I left their employ).

 

[*pixie*dust*]

I am a corporate trainer and work in HR. The previous poster is correct, I believe, in that if the sale wasn't complete while a person was on staff then there is really no obligation on the part of the company unless they have an internal policy that dictates this.
I know it sounds like a hassle to deal with over several years but at least he will still get the money.

 

[turnlisa]

Thanks for the replies. My DH contacted a lawyer from within our church and he confirmed what y'all are saying. Thanks for the help - I knew someone on the DIS would know!

Well, at least we will get the money. Yesterday one of the ladies from HR pulled DH aside and told him to file for his unused vacation and not to say he heard it from her. He had told his manager to let him know about any loose ends and thought this was covered. Apparently not. When he went downstairs to ask about it, they informed him he had 73 hours of unused vacation and would pay it in his next paycheck. Kind of burns us that they were willing to let him leave without saying anything! What his current company is not thinking is that he will soon be their client (Monday) and they should try to leave this on good terms with him. In his new position, he will be making the call on whether or not any business comes their way!