Some salespersons can become tremendously successful. They may become so successful that their commission payments can become a substantial portion of the total compensation that a business pays out. In some cases, these commissions can exceed the salary of senior managers and even that of the principles of the firm.
Sadly, rather than recognizing how beneficial it is having such a successful salesperson working for their company, the business may work to sabotage that salesperson. They may reassign them to a new territory, product or service. The business may suddenly find discrepancies in expense reports or the salesperson may receive a substandard performance review. Our attorney at The Law Offices of Joseph C. Bird, PLLC, is experienced handling these types of cases involving salespersons, broker-dealers or other sales representatives.
Sales Commission Disputes
The difficulty with these issues is that some agreements may be formal, but poorly or ambiguously drafted. They may have some formal elements, but may also use less well-defined factors, such as various industry practices and past dealings that work as long as everyone is on the same page.
In situations where a company may want to fire a sales representative who has obtained a large sale, and therefore placing the company on the hook for a large sales commission, the business may look for ambiguities within their contract or begin making questionable allegations of poor performance, misconduct or wrongdoing on the part of the salesperson, in an effort to claim their termination was lawful and justified.
Terminated To Avoid Commission Payment
If you have been terminated and it occurs prior to when your commission is paid, you may be protected by the Michigan Sales Representative Commission Act (SRCA). This act applies to salespersons of goods. When a sales commission payment will be due is controlled by the terms of the contract, the history of the relationship or by industry custom.
The payment should be made within 45 days after the due date is determined. Other compensation may be available if it is shown that the failure to make payment of the commission was intentional by the employer. Our employment law attorney can help you with these issues and all other sales commission disputes that you may encounter.
Contact Our Firm
For experienced assistance involving issues related to disputes involving sales commissions in Michigan, call our Birmingham office at 248-658-8590, and find out how we can help you or use our contact form.
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