Legality of commision payments

I've seen a few posts regarding companies screwing their reps over on commision payments they're owed, reviewed my contract and feel like i'm potentially open to getting screwed as well.


Would be really great for this community if someone could make or has already a post on stipulations in sales contracts specifically for protecting commision payment.

๐Ÿ’ฐ Compensation
โš–๏ธ Legal
๐Ÿพ Commission
10
Pachacuti
Politicker
5
They call me Daddy, Sales Daddy
If you signed it already, itโ€™s kinda water under the bridge. Most of the complaints here which I have seen deal with not getting paid after the fact.

So my advice is to keep meticulous records.
CPTAmerica
Opinionated
4
President/CRO
In a lot of cases there will be state specific items to consider. If youโ€™re concerned Iโ€™d pay a good HR attorney to help. Spend a couple hundred now so you donโ€™t lose thousands later.
braintank
Politicker
1
Enterprise Account Executive
They already signed the contract
CPTAmerica
Opinionated
0
President/CRO
Everythingโ€™s negotiable/amendable especially if youโ€™re a top performer in good standing with leadership.
Gasty
Notable Contributor
2
War Room Community Manager
apart from an already signed commission contract I guess
CPTAmerica
Opinionated
0
President/CRO
A new agreement or an addendum to what is already signed is absolutely possible.
braintank
Politicker
3
Enterprise Account Executive
You already signed the contract so what leverage do you have? If you push back prior to signing your employer can say: take it or leave it...

Is there something specific you're hung up on in your contract?
Sadboysales
Opinionated
1
Account Executive
Best AE on my team, on a good relationship with my exec's, just want my commision structure more defined than how it's currently written in my contract
braintank
Politicker
2
Enterprise Account Executive
What's not defined?

Have you asked?

Is it something they'd be willing to do for everyone?
HVACexpert
Politicker
2
sales engineer
Yeah asking doesnโ€™t hurt. See if there is a way to amend the contract , or perhaps write an email with questions or concerns and ask them to reply in writing. At least then you have a concrete answer.
CuriousFox
WR Officer
1
๐ŸฆŠ
The worst they can do is say no ๐Ÿคทโ€โ™€๏ธ
poweredbycaffeine
WR Lieutenant
1
โ˜•๏ธ
Do you have a lawyer that will help you redline your comp plan and somehow get the company to make addendums for a single rep? Or are you thinking more of a class action for all reps?
Maximas
Tycoon
1
Senior Sales Executive
Always push for that commission has to be paid no matter what as long as the sale is closed, even after leaving the company as a clear stipulation in your contract, but that needs to be with your next employer.
As, I strongly believe that it's nearly impossible to advise your current one to make any changes in your contract,so unfortunately you could either take it or leave it here!
Justatitle
Big Shot
1
Account Executive
Most often the language regarding a comp plan will state when commission is earned and paid and if you need to be in good standing to get paid, there is also an aspect of the state in which it is governed. No company wants to deal with legal action either and all that jazz.
Sunbunny31
Politicker
3
Sr Sales Executive ๐Ÿฐ
Yep, mine goes into a fair amount of explanation of what is earned commission vs payable commission. And it explicitly states you do not get paid if you're not employed.
ChunkyButters
Tycoon
0
AE
I always keep a copy of my signed comp plan. And before I sign it, I ask a bunch of questions to my manager and have them respond in writing. There are always "outs" and the ability for management to change it at any time without notice. Usually that's just to protect them in case you fuck them over. Sometimes shady management will fuck you over though.

Then if there are any issues, reference back. Thankfully my leadership hasn't fought me on any confusion and even gone beyond a reasonable outcome to ensure I'm happy and paid.
3

Commission on monthly payments?

Advice
13
8

Are your comms paid on MRR rather than annual contract value?

Question
17
16

FEELINGS- Your commission is annual (ARR) but the customer paid monthly (MRR) and if there is a churn in the next few months, the company will deduct by increasing your quota and taking the equivalent amount $$ from your quota in the next month.

Discussion
17