BillyHoyle profile picture
BillyHoyle profile picture

BillyHoyle

Senior Account Executive

Tycoon
Politicker
Big Shot
+9

Has Anyone Had Ever Dealt w/ a Lawyer for a Commission Dispute Case?

Hey everybody - I'm curious if anyone has ever had any experience with commission dispute cases. My company that I am planning on leaving owes me 120k in commission, but changed the rules on how the comp is paid out only on this one deal. According to the current policy in place, I am supposed to get paid in the month following booking, but they have since told me that I will not get paid until the outstanding invoice has been paid.


I have another job lined up, but, unfortunately the invoice was not paid on time, which means I will not receive payment until at least mid October (which I'm not trying to stick around until). I'm also technically on a PIP because I did not hit my minimum monthly quota two months ago (not sure if this matters at all).


I guess my question is, has anyone ever pursued a commission dispute case? Was it successful? Any advice?

⚖️ Legal
9

8 comments

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hh456
Celebrated Contributor
5
sales
Yes! Get a lawyer involved. They'll take a cut but getting $96k out of your $120k is better than $0.


Also, get a lawyer BEFORE you leave. If you get it after you leave, your odds go way down of recouping that money. Fight for your commission, that is no joke of money! 
poweredbycaffeine
WR Lieutenant
4
☕️
Did you sign a document that shows how deals are paid out, such as a comp plan? If so, did you have to sign a new document that outlines the rules they changed? If not, a simple letter or email from a lawyer may spook them into paying you.
BillyHoyle
Tycoon
3
Senior Account Executive
Signed a comp plan that states what I mentioned above. I have not signed anything since. Employer is a public company, so not sure a lawyer from a letter will necessarily spook them.
SaaSam
Politicker
0
Account Executive
Sounds like you have a solid case though. I would start by pointing that out and see if they pay it out. If not, get a lawyer. Typically attorneys will charge about 33% of the settlement. Especially on what seems to me to be a "slam dunk" case.

If you end up filing a lawsuit, do it before you quit.
paddy
WR Officer
4
Director of Business Development
Just google employee rights attorneys in your area and fill out a form. You should have a few contact you and it's worth at least filling out an intake. It falls under unpaid wages I believe.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
I'm feeling your pain just minus one 0. Damn. I have not had to pursue an actual case but I have had a 2 month delay before after I left where I had to keep hounding my old billing director who handled payroll. 
I'm currently interviewing places that will pay much better than I am at my current company, but I'll be stuck waiting for large commission checks (to me) until end of Oct. looks like. 

Best of luck with this.
SaaSData
Catalyst
1
VP of SaaS & Unit Economics 🏴‍☠️
Here's some thoughts.  I'm not giving legal advice but this is exactly what you need to do.

Make sure they DENY the payment and say commission can't be paid but you know it's on the SaaS Sales Leaders Dashboard as Closed Won.  


Let them know you expect to get paid, have it in writing that you aren't going.

Then it comes down to "they can change the comp plan at anytime any reason".

Technically, they will win if this goes any further, but it WON'T.

Here's why, you can get your lawyer to write 1 letter.  Literally 1 letter will save you here.

The letter will take about $2,500 - $3,000 (get a good firm so they know you mean business).

It's worth the gamble and if you hit the right bricks here, it's going to be a blast to get paid by them.

That's ALL you need, you will get paid.  

It's $50-80k for them to engage a SaaS (VC backed lawyer).  So unless they REALLY hate you and want to take oxygen out of your tank, they won't even fight it.

Yes, I've dealt with this.  If you haven't dealt with a commission law suit you aren't a good SaaS Rep.  This is when you gotta go tough and you gotta go serious.

I'm not a lawyer, but the comp plan is tricky.  There is usually a clause in there that tells you they can change it on you.

Here's the reality.  They won't want to fight it either.  (this is VC SaaS)...

All you gotta do is get a REAL lawyer who can write a REAL letter.  I'm talking certified mail and get it off to the top executive and HR.

Do NOT give in.  I've actually dealt with this three times and they paid me.  The collection of your deals is a bunch of bs.  That's not your job.

They will always use this shit against, you but let me tell you when you get THEIR attorney involved it's much cheaper to just pay you out.

Sorry you're going through this.  Please be safe out there Billy.  

Work for known WR friendly Sales Leadership, never get caught out old cold.

-SaaS Data
lmk if I can help

p.s. I ignored your comment on PIPs because they're worthless.  It just means they're going to fire you soon.  Get out anyways.  Sounds toxic.
Do.it.for.the.checks
Politicker
0
Account Executive
Seems clear cut get a lawyer. Commission plans are null and void if the company isn't acting in good faith.

Also you can pay hourly, keeps their cut lower. But you owe them whether you win or not 

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