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We have 60-120 days to collect on our clients accounts before our commissions get recaptured. I collected a check from a client a week before it was to hit the 120 day mark. The following week (before the deadline) my company was notified that the check bounced. I went out that morning and collected a cashier’s check for the same amount. My company said because it was 1 day after the deadline that I will not receive my commissions. Can they do this legally?
Asked on July 5, 2011 under Business Law, California
Answered 13 years ago | Contributor
You need to read the employee contract that you have with your employer (assuming you have one) and your employee handbook (assuming you have one) to help answer your question. These two documents may discuss the subject on collection upon customer accounts.
You mention that you have 60 to 120 days to collect upon client accounts to get commissions. Is this in writing with your company? If your company has a strict compliance with the time for payment on client accounts for employee to collect on commissions and strict compliance has always been enforced by your employer, then the 1 day payment beyond the time period allowed for you to get your commissions most likely will stop you from getting your commissions.
From an employer-employee relationship situation, your employer should give you your commissions for the 1 day late payment. I suggest speaking with your supervisior to see what can be done.
Good luck.
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