The War Room
Question
Post

Suing for owed commission

Has anyone successfully sued a company for owed commission? My last company owes me commissions for a deal I closed before I left. They keep saying it's "under review" even tho it was closed/ won in SF months before I left. I'm tired of getting dicked around. How would you handle this? If you have successfully sued and won please let me know how you did it and who you used.ย 
๐Ÿพ Commission
๐Ÿ’ฐ Compensation
๐Ÿ˜ค Conflict Resolution
20
antiASKHOLE
Politicker
4
Account Executive
I know most companies don't have to pay out commission upon departure. Just check to make sure that it is 100% owed within the fine print.

Also, how much? is it really worth trying to sue?
SaaSam
Politicker
5
Account Executive
Most judges wouldn't care if the employment agreement said they didn't have to pay out commission upon departure. Those employment agreements are usually pretty flimsy and judges rule against them all of the time.

All going to depend on how much you're suing for. Find a lawyer that specifically deals in wage disputes. Courts usually favor the employee in these disputes because nobody can stand shitty companies that refuse to pay what they owe.
Beefany28
Politicker
2
Account Executive
ROFL!! I can see the lightbulb
antiASKHOLE
Politicker
0
Account Executive
lmao, yeah... hmmm 16k is it worth it for me? meh, I already made it back.
jefe
Politicker
4
Head of Sales
No experience here, but best of luck
CuriousFox
WR Officer
4
Senior Account Executive
You will need to check your onboarding paperwork and consult an attorney. I am rooting for you.
Link
Executive
4
Hyrule Internet Sales Manager
Depending upon how much the commission owed isโ€”the financial loss might not be worth the gain.
Suing is super expensive, but definitely worth looking up your rights within your state regarding this sort of matter if you havenโ€™t already..?
SaaSsy
Politicker
1
AE
Totally agree - sometimes it's freeing to just mentally let go. Sucks though, I've been there myself.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
Its been my experience that you have to be there to collect. Why didn't they pay it out sooner, like before you left it was closed/won month prior?

Also, how much is it? If its under $100k, you're going to have a tough time finding a good lawyer who'll take the case on.
TennisandSales
Politicker
1
Enterprise Account Executive
I would consider how much it is before getting legal help.

But im with you if the deal closed before you left, its not crazy to think you should get paid. you "earned" the commission while employed.
LordOfWar
Tycoon
1
Blow it up
Do you have records of how they paid commission, contract sign date, and other details to prove you are owed it?

TBH unless it is a large amount they owe you, suing them will likely not be worth it to invest the time and $ to sue.

Check and see if there are free legal resources available in your area. Sometimes a simple letter from a lawyer is enough to make a company think twice.

I had a company screw me out of about $2500 but I didn't want the headache of chasing them through the courts. They've lost way more than that now thanks to my honest reviews whenever someone asks me about them before doing business together.
BillyHoyle
Tycoon
1
Senior Account Executive
If I were you, I'd connect with an employment law attorney and have that attorney send them a letter. In my experience, a little pressure usually gets the ink flowing.
adamrod
0
SDR (Sales Development Rep)
Depending on what I owed I would pay the 250 or so to get a letter of demand sent as a bluff. It would have to be a lot to make me go through the actual process of suing. But if you have a decent claim to it the demand letter on a lawyers letterhead should get results.
BusinessPlan
0
Business Development
Right/wrong is only part of the story. There are time asymmetries at work here.

If you cost them too much time/effort/headache ... it will be in their
best interest to just pay up. If they can fob you off into the
infinity ... then it is likely that they will.

Presume for the sake of
this discussion you are in the right. The question becomes how can you
burn their time and resources to the point that they will cry uncle and
pay.

First -- make them do their unhappy dance. Send a legal
demand letter to the legal dept, cc: mgr cc:ceo. Let them know that
dire consequences are just around the corner...please pay NOW.

Second -- Package your case.
This takes time and skill. Not everyone has the time/stomach for it. In essence ... prepare to actually go to court and win

Three -- well .. they did not pay. UGH!!!
Take them to court. You were not bluffing. Pay UP!

Four
-- congratulations!!! you won! You are now 20% to victory. Wooo.
Now hire a lawyer and take them through the collections process. This
takes time and is a real hairball.

If all goes well you will get paid in about 2 years.

Second theory: Move on. Avoid companies with bad reputations and bad ethics. Call it an investment in what not to do.

Breathe!!! This doo doo is very stressful. Life is short. Choose your priorities wisely.

Best,
GDO
Politicker
0
BDM
No experience but good luck. Do it for all other savages out there
AnchorPoint
Politicker
0
Business Coach
Settled a lawsuit earlier this month! I settled for half, simply because the courts are so backed up, it would have been a year or longer. Judge sent us to mediation. Mine was just under $20,000 so I was able to file small claims.
LockdownOperator
Good Citizen
0
Sales Operation
Going to PM you directly.

edit: I don't know how to DM on this website. Can you dm me?
Kmoney
Valued Contributor
0
Account Exec
I know someone who sued, and won.

Some people are saying itโ€™s it not a lot of money, it might not be worth it. Fuck that. It actually increases your chance of a settlement depending on how โ€œguiltyโ€ they may actually be.

Get with an attorney ASAP.
YungChallah
0
Enterprise Account Executive
Been through this. If the company doesnโ€™t settle you could be looking at 40-80k in lawyer fees to go to court. However, if do go to court youโ€™re looking at earning โ€˜trebleโ€™ aka triple in damages is typically how it works. A good lawyer will tell you if itโ€™s worth it or not.
Amrhegazy
0
freelancer
wish to you good luck
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Beefany28 , ย  CTXC , ย  BlueBlackBMW ย  and 123 people voted
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