If you are a sales representative, you probably have a relatively complex compensation package or employment contract. The complexity may be even greater if you are an independent contractor and not an employee. These arrangements are typically written by your employer. Often, sales representatives find that when they are owed a commission, they may have a difficult time determining if their pay was adequate and fair under the terms of their compensation agreement. Our attorney at The Law Offices of Joseph C. Bird, PLLC, has experience dealing with these employment law issues, and we can assist you in asserting your rights to fair compensation.
Manipulating Commission Payments
Some employers use various methods to reduce the likelihood of having to pay substantial commissions or bonuses in sales contracts. They may set sales tiers that are triggered in such a way as to make it virtually impossible for a sales goal to be met.
They may change or modify sales territories or product lines to prevent a successful salesperson from achieving goals which may be constantly changing or ill-defined. You may find situations where you encounter owed commissions and miscalculations with those commissions. It is especially important for salespersons to fully understand the terms of their compensation contract, and we can help you with that goal.
If you have terms that are not clearly or specifically defined, there is a strong probability that if a dispute over pay arises, the company will adopt a definition for that term that significantly impairs your compensation.
When accruing commissions, there is the potential for a successful sale representative to become too successful. Since they are employed to sell products, it seems impossible that any entity would be displeased if they significantly increased sales of their goods or services.
The problem is, owners, managers and supervisors are human and can become concerned if a salesperson earns more than they as a manager do. Employers may attempt to prevent these commissions from being paid, including firing the salesperson before the commission payment is due.
Owed Commissions Under Cut By Back Office Expenses
Employers may also have incentives to save money by attempting to pass on ‘back office’ administrative costs to their salespersons. This allows them significant savings. They do not have to pay the salesperson the commission they are owed and can use savings to cover their own expenses.
Contact Our Firm
For experienced assistance involving issues related to disputes involving sales commission disputes in Michigan, call our Birmingham office at 248-658-8590, and find out how our lawyer can help you or use our contact form.
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