Legal Question in Legal Ethics in New York

owed $ by former employer

former employer owes me commission checks, i have some samples that belong to him. can i continue to hold them as collateral til i am paid what i'm owed?


Asked on 6/08/09, 3:39 pm

1 Answer from Attorneys

Michael Markowitz Michael A. Markowitz, PC

Re: owed $ by former employer

Generally, there is no statutory law concerning a "retaining lien" to retain samples prior to payment.

However, you should look at NY Labor law section 191-c. The statute sets forth the following:

1. When a contract between a principal and a sales representative is terminated, all earned commissions shall be paid within five business days after termination or within five business days after they become due in the case of earned commissions not due when the contract is terminated.

2. The earned commission shall be paid to the sales representative at the usual place of payment unless the sales representative requests that the commission be sent to him or her through the mails. If the commissions are sent to the sales representative by mail, the earned commissions shall be deemed to have been paid as of the date of their postmark for purposes of this section.

3. A principal who fails to comply with the provisions of this section concerning timely payment of all earned commissions shall be liable to the sales representative in a civil action for double damages. The prevailing party in any such action shall be entitled to an award of reasonable attorney's fees, court costs, and disbursements.

Feel free to telephone this office to discuss further.

Mike.

Read more
Answered on 6/08/09, 3:50 pm


Related Questions & Answers

More Legal Ethics & Professional Responsibility questions and answers in New York