unpaid commissions

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parsec

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My company's compensation plan is based on revenue targets generated during each month, and our commissions are based on what percentage of the revenue target we actually bill. I have just discovered that there is not even a system in place to calculate the commissions each month, so commissions are usually not dispensed, or during months that revenue generation is high, commissions are given, though the amounts are way too low and can not be reconciled to activity during the month.

I have e-mailed the service manager about missing commissions this month, but he has chosen not to respond. I have printed reports from our client showing the work I did during the month, and I can prove what is owed in commissions. What recourse do I have? Can I put the heat on them somehow for their dishonest actions?

This is not a one time event, this is a well known problem with fellow employees, as well. They negotiate employees' salaries based on added commissions they say will be received, but they are never received!
 
If your salary is based upon targets generated and that employment contract was drafted by your employer (likely), then they would have the burden of providing the information in order to make those calculations. If several employees are affected by the same matter then you might wish to get together and collectively hire an attorney in the event that your employer does not wish to cooperate.

Not that your employer is doing anything unsavory, it has happened that employers will be purposefully vague regarding contractual terms so that they can pocket more of the revenue and then challenge the employees to obtain what they are owed. You may wish to send a letter in writing, certified return receipt regarding your suspicions. While e-mail is good, this is unquestionable proof of receipt in the event that the company either doesn't have backups or for some reason they end up missing. This may protect your rights to some degree in the event you do not receive replies or that your employer decides to terminate you as a result of uncovering their questionable practices.
 
A bunch of Bull...

This is total crap... of course they owe you the money! The person who is not responding is guilt of voliating company policy - most likely (which is worthless legally), but you CAN spin that as they were harassing & falsely denying the validity of your unpaid commissions (...somehow, you need to determine if they were putting you off to further the P&L for your branch or business unit) - which, if you can later prove in court, then they could be liable personally for breaking the law.

The fact is they have breached the agreement (your offer letter, sales compensation plan & the law) by imprementing a compensation plan that they have no effective means of calculating, paying, etc.

(Assuming your talking about a worthwhile amount of commissions)

Basically you need to 1st, while in good standing, get a letter/email/statement from someone in the operations side of the business to admit that they do not have the reporting tools, IT systems to effectively adminster the plan. Use your creativity here.

Next, check state law... you're protected, most likely on a number of levels... Most companies HAVE TO keep detailed records of wages & compensation and report those to you under a Personnel Records Review Act of some sort... standard in most states.

If the problem is wide spread, you're company may have a systematic accounting problem. Hopefully, your firm is a public company, which means your letter to the CEO demanding your unpaid sales commissions should imply that you believe a systematic account problem exists.... but you're simply willing to go on about your happy way as you think you're owed a mere $_________ as a result of these issues. Don't be surprised if the CEO doesn't every read your letter - they can't Sarbannes/Oxley stuff. But someone may choose to pay your commissions, for some other reason... BTW, you also know you job will be elimated in the next few months, but that's another lawsuit.

Next, get an attorney and fire away... just watch those attorney fees and make sure it's worth it. (Check your state law to see if actions to recover unpaid sales commissions, cover attorney fees.)
 
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