Legal Question in Employment Law in New Jersey

Commissions

I sold $12,ooo.oo worth of furniture to be delivered last July. Delivery was not complete, some items were damaged. Customer is now disputing this purchase with her creditor. Do I have a legal right to demand the commission due me for this sale? My employers are withholding this payment. I work on commissions solely. Please advise. Thank you.


Asked on 9/27/04, 10:54 pm

1 Answer from Attorneys

Alan Albin Alan S. Albin, Attorney at Law

Re: Commissions

The answer to your question would depend upon what your arrangement is with your employer concerning when you are considered to have "earned" the commission. You, personally, have no contractual relationship with the customer. You certainly have at least a legitimate claim to the commission to the extent that you made the sale, the employer booked the sale, and the merchandise was actually delivered to the customer. The employer appears to be withholding payment from you simply because of the employer's difficulty in collecting from the customer due to a dispute. However, you do not say you are anyway at fault for the alleged damage to the furniture, so I assume you are not. Is your receipt of commissions dependent upon the employer actually collecting the amount due on the sale? Also, if a sale is cancelled, do you have to return the commission? Even if so, you do not say that the sale has been cancelled. You do indicate that "delivery was not completed", which I assume is not your fault. Again, is your deal with your employer that you are entitled to the commission at the time the sale is booked, etc.? While I do think you probably have a valid claim, or at least an arguable one, you do need to discuss this at greater length with a retained attorney. The other important issue to think about is whether this particular commission is worth possibly disrupting an on-going relationship with the vendor.

I strongly recommend that you consult with an attorney immediately so that you can explore your legal rights, obligations, and options. If you wish to discuss retaining my services, contact me at:

[email protected]

(973)-605-8995

(*Licensed in New Jersey, Maryland, and Dist. of Columbia)

[Disclaimer: The above comments are not intended as nor should they be relied upon as "legal advice", which can only be obtained by personal consultation with a retained attorney; at which time the specific facts and circumstances of your case can be thoroughly evaluated. This reply is provided for general informational and educational purposes only, and does not create an attorney-client relationship with the responding attorney.]

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Answered on 9/28/04, 11:01 am


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