Employers are increasingly attempting to avoid having to pay sales employees their rightfully earned and owed sales commissions during the COVID pandemic. In many cases, a company has no legal basis to avoid paying sales representatives their earned commissions by unilaterally retroactively changing the terms and conditions of how sales…
Termination clauses are among the most important aspects of any independent sales representation agreement. Without a strong termination clause, an independent manufacturing representative is left without little legal protection should the principle decide it no longer needs its services. The recent Tax Court case Potter v Commissioner, T.C.M. 2018-153 (T.C.…
A New Jersey District Court has allowed an independent sales representative to proceed with his lawsuit against his principal company for failing to pay his earned sales commissions. This case reaffirms New Jersey’s strong public policy in assuring sales representatives are timely paid their earned sales commissions. Prior to New…
It is surprising for many independent sales representatives to learn that there are specific laws in place to protect the recovery of their unpaid sales commissions from their principal. In fact, many independent sales representatives equate an unpaid sales commission to that of an unsecured debt, often simply writing off…