Serious Representation For Your Legal Disputes

What to do if your employer refuses to pay your commissions

On Behalf of | Dec 4, 2023 | Commissions Losses

According to Flexjobs, there are over 2 million commission-based sales associates working in the United States. Working on commission can be both rewarding and challenging. The promise of earning based on your performance is enticing, but it also brings unique complications, especially when it comes to getting paid.

Imagine you have put in the hard work, made the sales and then, when it is time to receive your well-earned commission, your employer refuses to pay. This situation is not only frustrating but can also put you in a financial bind. Knowing how to handle this situation effectively and professionally is important.

Review your agreement

First, review the agreement or contract that outlines your commission structure. Ensure that you understand the terms and conditions, and check if you have met all the necessary requirements to earn your commission. Sometimes, the issue might be a misunderstanding or a discrepancy in the interpretation of the agreement.

Communicate your concerns clearly

Address the issue directly with the person responsible for payments. Clearly state your concerns and refer to the specific terms of your agreement. Keep the conversation professional and focused on finding a solution. Document this communication in case you need to refer to it later.

Gather documentation

Collect all relevant documentation, such as sales records, email correspondences and any other proof of your work and agreement. This evidence is important if the dispute escalates and you need to present your case.

Seek resolution internally

If direct communication does not resolve the issue, consider escalating the matter internally. This could mean speaking with a higher authority in your organization or the human resources department. Explain the situation and provide your documentation.

Explore alternative dispute resolution

If internal resolution is not possible or effective, consider alternative dispute resolution methods like mediation. This approach involves a neutral third party who helps both sides reach an agreement. It can be a less confrontational and more cost-effective way to resolve disputes.

Facing a refusal to pay your commissions is a challenging situation, but it is not insurmountable. By knowing what steps to take, you can seek the resolution you deserve. Remember to maintain professionalism throughout the process, as this will aid in finding a solution and preserving working relationships.