Employer-Employee Disputes Regarding Commissions
Many employees in certain fields are compensated on a partial or completely commission-based system. These arrangements occur primarily for sales-based positions, and require that the employer pay the employee a percentage or fixed amount for every sale made.
Simply because commission-based compensation is based on production does not exempt employees from being covered by both federal and state employment laws. When an employer refuses to pay a commission, an employee may be able to bring a legal claim to collect the money owed. These disputes may arise due to disagreements or misunderstandings about the terms of a contract or under what circumstances a commission must be paid. In the event of a dispute regarding commissions, it is important for both employers and employees to obtain qualified legal representation as soon as possible.
The Los Angeles employment law attorneys of HKM Employment Attorneys are dedicated to helping both employers and employees resolve commission disputes as quickly and efficiently as possible.
A California law that went into effect on January 1, 2013 requires that all agreements for commission-based employment services must be in writing. The law is known as Assembly Bill No. 1396 and can be viewed here. This law will likely benefit both employers and employees, as commission-based compensation agreements will be more clear, and disputes easier to resolve. In addition to state law, federal law also applies to employees who work on commission. Unless an employee qualifies under one of the various exemptions, a commission-based employee still must be compensated at a rate equal to minimum wage, which is $8.00 per hour in California.
Employment Lawyers in Los Angeles, California
Being denied a commission payment to which you are entitled can cause tremendous stress and can negatively impact your financial situation. On the other hand, as an employer, you need to make sure that your legal rights are protected and that you are adequately represented in the event of a dispute or a lawsuit.
In LA, our attorneys represent both employers and employees in disputes regarding commission payments, and work hard to obtain the best possible resolution for each client we represent. We have decades of combined experience in employment law representation, and provided top-notch legal counsel and representation. We pride ourselves in finding creative legal solutions to even the most complicated and acrimonious legal matters.
If you are having a dispute regarding commissions, contact a Los Angeles employment lawyer today to retain legal representation.