Employees traditionally earn wages in one of three ways – hourly wages, tips from customers, and commissions. Earning a living through sales commissions is one of the more difficult ways to earn a living due to the variability of each commission. Because each week’s pay may fluctuate based on the amount of commission earned, it is incredibly important to most employees earning commissions that their commissions are paid in a timely fashion.
Disputes over the payment of commissions can become messy affairs. It is always wise to hire an attorney to assist you in resolving any disagreement over the proper commission amount or payment date. Not only can attorneys provide advice as to what your rights are under Missouri’s commission payment laws, but an attorney can also assist you in filing a legal claim if a lawsuit is required.
An Overview of Missouri’s Sales Commission Laws
Sections 407.911-407.915 of the Missouri Code contain the laws regarding prompt payment of commission sales earned by sales representatives. Missouri’s laws were enacted as part of a broader framework of sales commissions laws adopted by 34 states in order to promote national uniformity in sales commissions laws. The sales commission laws were amended to confirm that the laws applied to all sales commission earnings, not just commissions for wholesale sellers.
The sales commission laws also require prompt payment of any and all outstanding commissions in the event that the sales professional is let loose. If commissions are not paid immediately, the sales professional has a right to sue for the lost commissions plus an additional amount of money calculated on the basis of sales as though commissions were still being paid and the employee was still employed.
For example, if an employer is terminated on the last of January without paying that month’s commissions and the employee demands payment, but is not paid until March, the employee is owed both commissions for January that were earned as well as commissions for the month of February calculated at the rate of average commission earnings.
This particular commission payment framework creates a strong incentive for employers to pay any commissions that are earned. Due to the potential consequences of not paying quickly, these types of disputes are often settled early. No employer wants to be on the hook for paying commissions for time that the sales employee did not actually work. Furthermore, under Missouri law, no employment contract can waive compliance with Missouri’s commission payment laws, which means that no Missouri employer can dodge enforcement of proper payment.
Jurisdiction and Procedure for Filing Sales Commissions Disputes
When filing claims under Missouri’s sales commission law, venue and jurisdiction are proper in Missouri courts even if the employer is located out of state. Additionally, any other claims that the sales employee has against the employer may also be joined. An experienced employment law attorney can assist you in filing a claim in court if the need arises and early settlement is impossible.
Contact a St. Louis Commission Dispute Lawyer Right Away
If you suspect you are owed unpaid commission, contact the legal team of HKM Employment Attorneys LLP today. Our team of St. Louis employment attorneys possess extensive experience helping clients with an array of employment matters including uncompensated commission claims. For immediate assistance, contact our team today.
