Terminated without cause, unpaid commissions, and shady practices by former employer

[Christine B.]

Jurisdiction

Florida

I was recently terminated by my employer without cause. The severance offered was the month of January's commission ($2600) along with one month's pay (roughly $12k gross). As the only Salesperson, I had just signed and began to on-board the largest client landed to-date, which would have paid out commissions at roughly $30k in 2023. The timing of the termination is questionable, as the key objective for 2023 is to increase margin, and as no one else will receive these commissions, it seems a large benefit to the company to be able to pocket that money rather than payout the salesperson.
Additionally, I had recently voiced some concerns over a newly hired executive who was brought in at an exorbitant dollar amount (some $40k/month) while still under a strict non-compete with her former employer- a main competitor of ours. It was not her salary that I complained about, but the workload that was being passed off to me, as she was unable to attend some of the calls and meetings, due to the non-compete (certain calls may have had potential customers and contacts who knew of her in the previous role, so she would not attend). This made completing certain job functions of mine rather difficult, as I was handed some of her projects and calls which took precedence. Furthermore, she is working under an alias, a fake name, and a fake email address to avoid getting caught by the prior employer, all of which I addressed directly with my CEO. A week after expressing the issues, I was terminated.
I am wondering what the pro's out here would suggest, as I feel the company is acting unethically, engaging it what feels like unfair business practices, and potentially retaliating against the employee who was able to voice said concerns. Do you think I have a chance of an improved severance package? Is mentioning the non-compete issue going to be viewed as "blackmail"? Does this sound like a case of unfair or wrongful termination that I should further fight? I'm not interested in making a "big deal" out of the entire situation, I just want to be paid for the hard work I did and according to my pay agreement. It's difficult to take the step and "lawyer up" when you are worried about your financials, looking for a new job, etc. I want to make sure I am doing the right thing if I do take it forward and appreciate very much any professional thoughts on this. Thank you in advance for any insight!

 

[army judge]

Do you think I have a chance of an improved severance package? Is mentioning the non-compete issue going to be viewed as "blackmail"?

Human beings lack the ability to predict the future for themselves, much less other human beings.

That said, only you can decide what is best for you, after all, human beings are given the gift of free will at birth.

I pray you will use your gift wisely.

 

[cbg]

You've got a lot of stuff in here that I don't have time to address right now. I'll be back when I'm off work for the day. If you don't see me respond this evening, remind me.

 

[cbg]

along with one month's pay (roughly $12k gross)

That is $12k more than the law requires you be paid. There are only three states where severance is ever required by law; Florida is not one of those states; even in the three states where it is sometimes required, it is not required in these circumstances.

The timing of the termination is questionable, as the key objective for 2023 is to increase margin, and as no one else will receive these commissions, it seems a large benefit to the company to be able to pocket that money rather than payout the salesperson.

Florida has very weak wage and hour laws; however, commissions tend to be covered under contract law rather than wage and hour law. If there are commissions you are due under either state law or your enforceable commission agreement that you do not receive, you are free to sue them for it. If the amount falls under the small claims amount that would be the way to go - otherwise talk to a local attorney about filing a civil suit. FYI, in my state, which is considerably more employee-friendly than Florida, you would be owed commission on sales that you CLOSED before you left, but not on ones that someone else closed after you left, no matter how much work you may have put into them before your last day.

It was not her salary that I complained about, but the workload that was being passed off to me, as she was unable to attend some of the calls and meetings, due to the non-compete (certain calls may have had potential customers and contacts who knew of her in the previous role, so she would not attend). This made completing certain job functions of mine rather difficult, as I was handed some of her projects and calls which took precedence. Furthermore, she is working under an alias, a fake name, and a fake email address to avoid getting caught by the prior employer, all of which I addressed directly with my CEO. A week after expressing the issues, I was terminated.

These are not complaints that are protected under the law; therefore termination for these reasons, even if proven, does not constitute a wrongful termination. Not all of what the average Joe or Josie considers to be "retaliation" is illegal, and to have a wrongful term you need a violation of law. It may or may not be poor management, but complaints about work load are not protected and neither are complaints that another employee is violating her non-compete. If indeed she is; I doubt that you are privy to all the details of her employment.

Do you think I have a chance of an improved severance package?

You know your employers and I don't. However, based on what you have posted I have a feeling you have better odds of having your current severance offer pulled (and yes, that would be legal in all 50 states) then you would be of getting an improved offer. I'm not going to tell you to try or not try, but you need to weigh the risks carefully. Remember, you are not owed any severance at all under the law, and if you are owed any under a contract or CBA you've not mentioned it.

Does this sound like a case of unfair or wrongful termination that I should further fight?

No. Nothing you have posted suggests that you were fired for a reason prohibited by law, which is what is meant by a wrongful termination.

 

[adjusterjack]

I feel the company is acting unethically, engaging it what feels like unfair business practices,

Unethical and unfair are not necessarily illegal.

Do you have a commission contract?

If you have one, what does it say about termination?

If you don't have one, or the one you have has not been breached, then you are done. Take your money and move on.

After you are out the door and your money is safely in your bank account, feel free to write an anonymous letter to her former employer advising them of her non-compliance with her non-compete.

 

[cbg]

After you are out the door and your money is safely in your bank account, feel free to write an anonymous letter to her former employer advising them of her non-compliance with her non-compete.

I'm good with that. Though I have before seen instances where Employee A was certain that Employee B was either engaging in or the victim of illegal practices and was proven wrong because Employee A did not have all the facts.

 

[Tax Counsel]

There is a lot of confusion among employees out there about what constitutes illegal behavior on the part of the employer. There are a lot of things you might find unethical or unfair but that are perfectly legal for an employer to do. Not that those things are smart for the business to do; I've seen plenty of employers do a lot of stupid things that, while not illegal, ended up effectively smacking them in the face.

Specifically, most retaliation by an employer is actually legal. It is illegal in many instances to retaliate against an employee who reports violations of the law by an employer to the appropriate agency that enforces that law. But if John complains to his boss that he feels he's not being paid enough because his workload has increased, the employer may legally fire John for raising that issue. There is no violation of the law involved in that complaint. Whether it's smart to fire John is another matter.