Commissions due after Resignation

What Are You?

I don't know how much you are owed, but, if it is significant, you really need to become willing to pay a consultation fee to an attorney who can examine your case in detail to give you the answers you are seeking. I am responding to this query because of the interesting questions it raises.

You seem to indicate that you had a contract which referred to you as an "employee at will." If you were an employee, then the employer is probably violating a number of different statutes. But the way you describe the job also suggests that you may have been an independent contractor.

The distinction between employee and independet contractor is extremely important in determining your rights. Each classification has advantages and disadvantages. Some employers like to fudge the distinction so that can get the advantage of each classification while trying to avoid the disadvantages of each classification.

Even if you were paid straight commission, annual payment of commissions/wages is improper. But only if you were an employee. As an independent contractor annual payment would be highly unusual, but probably not illegal.

Under New York State law, employers are basically prohibited from making any deductions from wages unless the employee consents. (A big exception is, of course, for withholding taxes.) Thus, withholding the costs of training is also prohibited, but what did your contract say about deductions and the costs of training.

The question of withholding if you were an independent contractor would be governed entirely by the terms of the contract, which may or may not includes terms and conditions not contained in the written part of the contract.

There is a special law in New York State which addresses the issue of commissions.

posted by David M. Lira  |  Jun 7, 2005 08:17 AM [EST]