St. Louis Sales Commission Dispute Attorneys

Missouri Law Firm Fighting for Sales Representatives in Commission Dispute Cases

Unlike other employees who might receive a fixed salary, sales representatives often have a unique payment structure that includes a base salary complemented by commissions. This commission-based element is typically tied to sales performance, incentivizing representatives to achieve higher sales targets, enabling them to earn more in proportion to their sales success. There are instances where employers delay or outright refuse to provide timely payment of these commissions, citing reasons like financial constraints or disputes over sales calculations. Some employers may also refuse to pay outstanding sales commission when a sales representative is dismissed.

At Sedey Harper Westhoff, we can help sales representatives enforce their rights when employers fail to provide commissions. Our employment law attorneys only represent individuals in these matters – never employers – and can work to efficiently secure all owed compensation and damages available under the law. We are familiar with how Missouri adjudicates commission disputes and are prepared to put our over 40 years of legal experience to work for you.

There’s never an acceptable excuse for not paying contractual sales commissions. Call (314) 819-0963 or contact us online to schedule a consultation with our St. Louis sales commission dispute lawyers.

Common Sales Commission Violations

A sales commission agreement is a legally binding contract between an employer and a sales representative, outlining the terms and conditions under which commissions will be paid. This agreement is crucial, as it provides clarity and sets expectations regarding payment practices. When an employer fails to adhere to the terms outlined in the commission agreement, it generally constitutes a breach of contract.

Missouri’s commission payment laws are designed to protect sales representatives and define their rights and remedies when these violations do occur. No employment agreement can lawfully waive compliance with these laws, so if your employer points to a clause that contradicts an applicable state statute, be aware that is likely unenforceable.

Some common sales commission violations include:

• Delayed payments. One of the most frequent violations is the delayed payment of earned commissions. Despite successfully meeting their targets, sales representatives may face untimely payouts due to purported administrative backlogs or financial issues within the company. 
• Incorrect commission calculations. Errors in calculating the appropriate commission amount can lead to discrepancies between what is owed and what is paid. This can arise from misunderstanding the terms of the commission plan, technical errors in data input, or intentional manipulation to minimize payouts. 
• Unjustified withholding of commissions. Employers may withhold commissions based on unwarranted claims, such as alleged failure to meet specific criteria or customer cancellations, without proper verification or documentation. 
• Arbitrary changes to commission structure. Altering the commission structure without mutual consent or adequate notice is another common violation. Such changes might involve adjusting the percentage rates or modifying qualifying criteria, which can unfairly disadvantage sales representatives.

Missouri’s Sales Commission Laws When a Sales Representative Resigns or Is Terminated

If you are a sales representative who has been dismissed or chosen to resign, state law governs how quickly your former employer must pay your final sales commissions. Your employer must issue payment for all outstanding sales commissions within 30 days of the date you left the company. If any further commissions become due following your termination (such as a sale you negotiated closing after you’ve departed), your former employer must pay you within 30 days of the commission becoming due. 

If your employer fails to pay within the permitted time for any reason, you have the right to sue them, and we encourage you to get in touch with our St. Louis sales commission dispute attorneys. We can help you seek the unpaid commissions as well as additional compensation, the amount of which will be based on what you would have earned if you were still working during the period between the date the payment was owed and the date of actual payment. If you win your case, your former employer will also be responsible for paying your attorney’s fees and court costs.

Is your former employer ignoring your requests for sales commissions you are contractually owed? Give us a call at (314) 819-0963 or contact us online to learn more about we can help.