BS
BS

Baker S

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Paying out a commission after I leave?

I've been offered a new role but I'm due to get commission paid one month after the quarter. Is there anything in NY law that means they have to pay me after I leave?

I also sold a very large deal and am getting a spot bonus as a result , but I think that will also be paid out in my normal commission plan, is that normal?ย 
๐Ÿง  Advice
๐Ÿพ Commission
๐Ÿ˜ณ Ethics
14

16 comments

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BmajoR
Arsonist
7
Account Executive
It all depends on what your comp plan says. I'd review it with a lawyer if it's a sizeable commission payout you're expecting. I can't speak on NY law but in CA if they word things in a particular way then you're fucked.
Sunbunny31
Arsonist
4
Sr Sales Executive ๐Ÿฐ
BmajoR is right - it all depends on the comp plan.
If you have to be actively employed at the time the commission is due to be paid, can you defer starting your new role until after you get paid?
BmajoR
Arsonist
4
Account Executive
Also they could ask for a sign on bonus to offset the lost commissions.
Sunbunny31
Arsonist
2
Sr Sales Executive ๐Ÿฐ
Iโ€™ve seen that negotiated before. Good call.
1
AM
Yeah my sign on bonus is a mere fraction of the commission that could be lost
Sunbunny31
Arsonist
3
Sr Sales Executive ๐Ÿฐ
So in that case, does your current comp plan account for commissions earned but not paid when you depart? And if you donโ€™t get paid out, can you push the start date for the new role out? I realize that may carry some risk - so be cautious.
LambyCorn
Arsonist
3
A mfkn E
check your contract; i signed a new contract yesterday and it states that they can rug my comissions under a bunch of terms, one of them is leaving before getting paid
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Odds are if you arenโ€™t there, they donโ€™t have to pay you unless you have some sort of employment contract stating otherwise.
Kosta_Konfucius
Politicker
2
ERP Sales
I would ask around to people who left since it can vary with the comp plan
GDO
Politicker
1
BDM
It's probably in your comp plan/contract
Beans
Big Shot
1
Enterprise Account Executive
Review your plan and/or stagger your exit.
jefe
Arsonist
1
๐Ÿ
Not sure about your laws, but in general most companies will word the comp plan so that they do NOT pay you out after you leave.
Which sucks, but isn't illogical.
ChumpChange
Politicker
1
Channel Manager
From what I've experienced, it all depends on when payment has been collected by the client. Also, if you leave outside of your commission period then they would just pro-rate you what you've earned.
CuriousFox
WR Officer
0
๐ŸฆŠ
What does your employment agreement or commission contract say?
Armageddon
Opinionated
0
Enterprise Account Executive
this can be tricky. In my experience, most companies wont pay out comp after you leave unfortunately
PGC007
Good Citizen
0
president
Highly unlikely they will pay out - if your new employer really wants you then explore them paying a sign-on bonus to cover lost commissions

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