Failure to pay all outstanding commisions can be big trouble for a Missouri employer.
There are a few statutes to consider when an employer fails to pay commisions owed, particularly upon the employee's departure.
Missouri statutes protect payments of outstanding commissions.A Missouri statute specifically addresses failure to pay sales representative commissions, and provides liability to an employer in a civil action for actual damages if that employer fails to pay all outstanding commissions.
Per the commissions’ statute, when the contract between a sales representative and a principal is terminated, all commissions then due shall be paid within thirty days of such termination. Any and all commissions which become due after the date of such termination shall be paid within thirty days of becoming due.
The statute further provides: “Any principal who fails to timely pay the sales representative commissions earned by such sales representative shall be liable to the sales representative in a civil action for the actual damages sustained by the sales representative and an additional amount as if the sales representative were still earning commissions calculated on an annualized pro rata basis from the date of termination to the date of payment."
That same statute also allows employees who were not paid their commissions additional damages including attorney fees and costs.
You should consult a lawyer to undertsand how the rules may apply to you.The subject of commisions can be tricky. If you believe that commisions you earned were unfairly withheld, you should consult a lawyer to understand how the rules may apply to you.