We previously wrote about the procuring-cause doctrine here. As a refresher, the procuring-cause doctrine provides that a salesperson or other agent who contracts for a commission becomes entitled to payment of the commission...more
Seyfarth Synopsis: Baylor Miraca Genetics Laboratories, LLC (“BMGL”) is in the genetic test business. BMGL sells its tests to its “channel partners,” who in return test specimens ordered by physicians. Brandon Perthuis became...more
For many years, an oft-litigated question concerned whether a former employee was owed the commissions on sales made prior to the employee’s discharge from employment. Sometimes employment agreements were clear on the issue,...more
Although not his most lyrically creative effort, John Mayer’s “Say” has a very important lesson for those drafting contracts: “Say what you need to say.” That refrain, which can be heard over 40 times in the original song, is...more
I have handled many commission cases, where someone sues, claiming they are owed commissions. The key issue in such cases is to determine if there is a written contract and then to ascertain what the vesting provisions for...more
Arizona law with respect to payment of bonuses and/or commissions is not always clear. There are many issues for both the employer and employee to consider. Below is a summary of some of things both parties should consider in...more
On October 29, 2019, the Utah Supreme Court issued a rare decision reversing the Utah Court of Appeals. At issue was whether an at-will salesperson who had completed six contracts for sale of television services, and who was...more
When a company negotiates either an employment agreement or separation agreement with an employee, the employee benefits offered are typically a large piece of the total package. However, the terms of these types of...more
On August 21, 2018, the IRS issued initial guidance (Notice 2018-68) to assist companies in determining how the changes made to Internal Revenue Code Section 162(m) (“Section 162(m)”) by the Tax Cuts and Jobs Act of 2017 (the...more
When an employer changes its contract with an employee, the change should be communicated clearly—and preferably, in writing. Otherwise, the employer may be at risk of finding that the old terms still control. For example,...more
North v Metaswitch Networks Corporation, 2017 ONCA 790 [Metaswitch] is the latest in a series of employee-friendly appellate level decisions where a contractual termination provision is not enforced. The Ontario Court of...more
When we review employee sales commission plans or compensation agreements with sales representatives, the plans generally contain detailed language regarding how commissions are calculated and paid. For example, the plans may...more
- AC34886 - State v. Bush - AC35418 - State v. LaFleur - AC36275 - North Star Contracting Corp. v. Albright This case dealt with who is the proper party to bring a shareholder derivative action. A...more
California Employees Can Waive Class Claims In An Arbitration Agreement, But Not PAGA Claims - Resolving an issue that has created uncertainty for California employers, the California Supreme Court recently held in...more
Do you have any employees that are paid on a commission basis? If so, do you have a written contract setting forth the terms and conditions by which commissions will be earned and paid? Has the contract been signed by the...more