Substandard performance reviews to avoid payment

| Sep 19, 2019 | Firm News |

Some Michigan sales representatives go beyond the normal. In most companies, you would think that these people would be the shining stars in the eyes of the employers. Unfortunately, this is not always the case. When a person makes a big sale, his or her contract entitles him or her to the commission originally agreed on. Some employers may begin to look for ways out of having to pay the sales representative for his or her work. At the Law Offices of Joseph C. Bird, PLLC, we understand the importance of payment for a job well done.

In some cases, sales representatives may make more money than the CEO may. Forbes tells the story of a CEO who discovered that a sales representative was making more than he was and decided that it was too much money. Deciding that it was a mistake, he changed the sales representative’s commissions. This is grounds for a lawsuit.

In other instances, CEOs may try different tactics to avoid payment. He or she may release poor performance reviews to try to explain why the employee does not deserve the payment. He or she may make false claims to sabotage the salesperson. Suddenly, he or she may find problems with the expense reports. No matter what the business tries, if you are under contract to receive commission, then the company has to pay you. If the employer does not offer payment within 45 days of the due date, it is failure of payment.

The SRCA is there to protect sales representatives from these tactics. Our web page offers more information about this topic.