Can the Michigan Sales Representative Commission Act protect sales representatives?

| Sep 19, 2019 | Firm News |

As a sales representative in Michigan, commissions are your livelihood. It is likely in your contract that if you make a certain sale, you receive a percentage of that sale. Sometimes, when employers construct these contracts, they do not think about how big of a sale the employee may make. This does not make you less entitled to your money. However, it does put you at risk for the employer to try not to pay you.

If this happens, there are protections in place to help! According to Michigan Legislature, the Michigan Representative Commission Act protects sales representatives and provides legal recourse for those who do not receive payment. This act, also called the SRCA, goes into effect if a sales representative has a contract to sale goods to customers and receives payment based on commission.

Two things may happen when an employer breaks the contract. The first is that he or she refuses to make the payment on time. The SRCA goes into effect even if your employer is late on making the payment to you. The second way that the SRCA comes to the defense of sales representatives is when the employer refused to pay period. The SRCA follows the terms of the contract. Now, if there is no due date in the contract, then the SRCA will look at the history of the two parties. If the employer always paid by a certain date, then you should expect to receive said payment by that date.

None of the above information is legal advice. It is only to educate on how the Michigan Sales Representative Commission Act works.