QUESTION
Can my commissions be forfeited upon termination
Asked on Jun 26th, 2014 on Labor and Employment - North Carolina
More details to this question:
I was employed in NC and was terminated last week. The company said they were outsourcing my position. I have also learned that a co-worker has taken over part of my position. I had an employment agreement that outlined my base salary plus commission. I had completed 2 contract/sales deals while I was still employed that the company has now refused to pay me for. They said in an email response to me no commissions are due because my employment agreement had ended. No where in the employment agreement or company handbook does it state that commissions are forfeited at termination. These were deals I put together while employed and doing my job. Can the company refuse to pay the commissions?
1 ANSWER
4 Awards
Sure, it could refuse to pay you for the commission. The question is: could you file a legal claim for the commissions? The answer is: possibly. The wage and hour law in North Carolina requires an employer to pay promised wages if the employee earns the promised wage. The issue will be what the pay policy/agreement says. For example, does it say that you forfeit any unpaid commissions if you are terminated? The pay policy/agreement itself only terminates if it is replaced by a new policy/agreement.
Answered on Jul 06th, 2014 at 7:32 AM
I am an experienced attorney focusing on employment law in North Carolina and Tennessee. This post/response is not meant to constitute legal advice.