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Posts tagged Employee Rights
Michigan Sales Representative Commission Act

If you have ever worked a commissions based job you know how critical those commissions are to your financial well-being. You likely also know the accounting of these commissions and ultimate power to pay what is due is controlled, often blindly, by the employer.  What can be even worse is when employees begin to question what amount is due and when it will be paid, some employers opt to simply terminate the employee to avoid the hassle and keep the earned commissions for themselves. 

The Michigan Legislature recognized this inequality of bargaining power and gave terminated commissions employees a gift in Michigan Sales Representatives Commission Act.  Under the Act, commissions due to an employee when his/her contract is terminated must be paid within 45 days.  Commissions that become due after the time of termination similarly must be paid within 45 days of coming due.  While a written sales representative contract is helpful, even oral contracts are covered by the Act.

If these amounts are not paid, the Act gives the employee strong recourse.  Not only are the commissions owed recoverable, but so too are attorney fees and court costs.  To make things even sweeter and to deter this kind of conduct by employers, if the commissions are intentionally withheld (meaning the employer knew they were owed or had reason to know that they were owed), the employee can recover an additional amount equal to double the amount of commissions owed or $100,000, whichever is less! 

If you have been terminated from a sales commission-based position and you know that you have unpaid commissions that your ex-employer is aware of and refuses to pay within 45 days of your leaving, contact The Law Office of Mattias Johnson today.  Often times we can take these cases on at little or no cost to you and we recover only if you recover, so you have nothing to lose.  Statutes of Limitations may be at play so contact us today.