Impact of Employee Resignation or Termination on Entitlement to Commissions Under New York Law
Created on September 27, 2016
Under New York law, commissions that are 'earned' are considered wages that must be paid to an employee within a prescribed period of time after the employee's resignation or termination from a company. Therefore, when a commission is earned it is critical as it determines the rights and liabilities of the commissioned salesperson and the employer.
In order to answer that question, attorneys Lynn Judell and Maxiel Gomez review relevant New York statutes, recent cases, and provide real life examples and guidance on how to handle commission claims.
- Review and discuss Section 193 of the New York Labor Law
- Survey recent New York Case Law
- Address whether entitlement to post-termination commissions depends on whether the employee was terminated "for cause"
- Understand how New York Courts treat and interpret written sales commission provisions in written employment agreements, including the likely outcome when an employment agreement is silent on when commissions are earned and whether forfeiture provisions are enforceable
- Answer the question: When it comes to sales commissions, are sales representatives who are independent contractors treated differently than employees?
- Identify how payment of post-termination or post resignation commissions differ from bonuses or incentive compensation
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