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Pennsylvania Wage Collection Law and Sales Commission Plans

Philadelphia, PA |

If a written commission plan states that sales commissions are payable upon invoicing, is an another portion of the plan that states upon termination, the only commissions that need to be paid are those for which payment in full have been received by the employer enforceable?

The particular issue, as I see it, is whether by operation of the first part of the plan, a commission has been "earned," such that a different part of the plan cannot then change the terms. Take, for example, the situation where an commissioned employee is laid off after an invoice has been received but before that commission has been paid and before the customer has paid the invoice.

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Attorney answers 1


This is a common question. Probably, you have to be employed when payment is received to be entitled to the commission. However, if the company fires you on, say, the day before payment arrives, and it knows payment is about to arrive and times its firing to avoid paying you the commission, then you may have a case.