Unpaid Sales Commissions FAQs

What happens if I do not have a contract with my employer regarding my commission?

The law provides the terms of the contract between a salesperson and the employer or principal determines when a commission becomes due and payable.  If there is no contract between the parties, the past practices between the sales representative and the employer or principal control as to when the commission is due.  If there are no past practices between the parties, the custom and usage prevalent in Michigan for the business that is the subject of the relationship controls as to when the commission comes due.  
 
When do my sales commissions have to be paid?

The law also provides all commissions that are due at the time of termination of the contract between the sales representative and the employer or principal shall be paid within 45 days after the date of termination.  Commissions that become due after the termination date shall be paid within 45 days after the date on which the commission comes due.
 
What damages can I recover under the Sales Representative Commissions Act?

The Sales Representative Commissions Act provides for stiff penalties to the employer or principal if commissions are not paid in accordance with Michigan law.  A principal who fails to comply with the law is liable to the sales representative for both of the following:

B. If the employer or principal is found to have intentionally failed to pay the commission when due, an amount equal to two times the amount of commissions due but not paid as required by law or $100,000, whichever is less.

Can I recover attorney fees if I prevail in a lawsuit brought under the Sales Representative Commissions Act?

Yes.  The law provides if a sales representative brings a legal claim under the Sales Representative Commissions Act, the court shall award to the prevailing party reasonable attorney fees and court costs. 

What if there is a provision that waives my rights to bring an action under the Sales Representative Commissions Act in the contract that I signed with my employer?

A provision in a contract between an employer and employee which requires the sales representative to waive any rights under the Sales Representative Sales Commission Act is void.

How do I get more information?

If your employer or a principal has failed to pay you commissions for the sale of a product, you may have a claim under the Sales Representative Commissions Act.  If you would like more information, please phone Dykema Law office at 616-363-6611 or email us to set up an appointment with Attorney Jon Schrotenboer for a free consultation.