Have Your Sales Commissions Been Withheld in Michigan or Florida?
Many corporations that sell goods or services rely on sales representatives to secure orders or contracts. Companies frequently use commission payment structures to incentivize and reward sales representatives for successfully obtaining customers. However, employers and sales representatives can get into costly disputes over representatives’ entitlement to commission payments, as well as the timing and amount of those payments.
When you have significant sums of money on the line in a sales commission dispute, our experienced team can guide you through the litigation process.
Understanding the Michigan Sales Representative Commission Act
The Michigan Sales Representative Commission Act governs the right of commission-based sales representatives to receive payment of commissions for sales the representative has made on behalf of their employer. The law applies to any business that manufactures, produces, imports, sells, or distributes a product in Michigan or contracts with a sales representative to solicit orders for or sell a product in the state.
The law also defines a sales representative as someone employed to solicit orders or sales of goods and who is paid, in whole or in part, by commission. The Act defines commissions as compensation paid to a sales representative that is calculated as a percentage of the number of orders or sales, or of the profits secured by the representative.
The law requires payment of commissions under the terms of a contract between a sales representative and an employer. If the parties do not have a contract, payment must be made in accordance with the parties’ past practices or the usual custom in Michigan for the employer’s industry.
The law expressly states that employers must pay any commissions due upon the termination of a sales representative’s employment within 45 days of the date of termination. Employers must pay any commissions that become due after the date of termination within 45 days of the commission’s due date.
Employers who fail to pay commissions that become due may face financial liability in a lawsuit for those unpaid commissions. However, the law also allows sales representatives to recover an additional amount equal to the lesser of two times the amount of unpaid commissions or $100,000 when an employer intentionally fails to pay commissions that become due.
Finally, the law authorizes courts to award legal fees and costs to the prevailing party in a lawsuit. The prevailing party is the party that prevails on all allegations in the complaint or all responses to the complaint.
The law also precludes employers from including any provision in a sales representative’s contract that purports to waive the representative’s rights under the Act. The law deems any such contractual provision void.
Legal Disputes Over Sales Commissions
At August Law, our legal team represents individuals and corporations who have disputes over sales commissions, such as:
- Calculation of commission amount
- Timing of commission payments, including determining when commissions become “due” under the parties’ agreement, past practices, or industry standards
- Claims of withheld commission payments or failures to pay commission after termination of employment
- Disputes over a representative being the “procuring cause” of an order/sale when agreements lack express provisions governing post-termination commissions
- Clawbacks of commissions
How Can an Attorney Help You in a Case Dealing With Withheld Sales Commissions?
A legal dispute over a sales representative’s right to commissions may involve complex factual and legal issues. An attorney from August Law can help you pursue a successful resolution of your sales commission case by thoroughly reviewing your agreements to determine the parties’ respective rights and obligations. We will use our extensive legal knowledge to advise you on how Michigan’s Sales Representative Commission Act may affect your rights and obligations.
Our firm will also thoroughly investigate your case, including obtaining relevant contracts and financial information to resolve questions about the timing or amount of commission payments. Our firm will work with top financial experts when necessary to prepare your case. While our legal team will pursue an efficient resolution of your legal dispute, our experienced litigators can advocate for your position and interests in court and at trial.
Why Choose August Law for Your Case?
Depending on the industry, disputes over sales commissions can involve millions of dollars. When you find yourself or your business in litigation over unpaid sales commissions, you need a seasoned attorney who can walk you through your legal options and advocate for your interests and goals. For years, clients with sales commission cases have turned to the legal team at August Law because of:
Our Winning Track Record
Everyone wants to have a lawyer who wins. We do. We dedicate ourselves to winning our clients’ cases rather than running up legal fees. Our legal team boasts an unparalleled record, including obtaining the largest reported settlement/verdict in Michigan in 2010. Over the numerous complex litigations we’ve handled, with few exceptions, we’ve consistently achieved success for our clients. Few attorneys and law firms have a consistent record of winning large-dollar and high-profile cases.
Our Recognition Among Our Legal Peers
Our record of success has earned our firm numerous awards and recognitions from the country’s leading legal organizations and publications. Principal attorney Gary August has received an AV Preeminent rating from Martindale-Hubbell and a 10.0 Superb rating from Avvo. He has also earned top listings from publications such as Super Lawyers, Best Lawyers in America, and Michigan Lawyers Weekly.
Our Extensive Legal Knowledge and Experience
Many law firms claim extensive legal knowledge but charge you substantial fees for “research.” However, when you walk into the offices of August Law, you can expect our legal team to have a fundamental understanding of the legal issues in your case. Firm founder Gary August has handled various legal issues for diverse clients, enabling him to develop broad legal knowledge.
Our Caring and Ethical Approach
At August Law, we care about helping our clients succeed. For us, a successful case means winning and ensuring our clients’ satisfaction with our service. We strive to win ethically, which means never cutting corners or pursuing success at “any cost,” as our clients will have to bear those costs.
Contact Our Sales Commission Attorney Today to Learn More About Your Rights
For over 30 years, firm founder Gary August has handled many of Michigan’s most complex and high-profile litigations. He has a proven reputation for deep legal knowledge and for effectively communicating his clients’ interests and legal positions. Mr. August has represented some of the country’s largest corporations, giving him the experience to take on cases with the highest stakes.
After getting into a dispute over sales commissions, get the legal assistance and advocacy you need to protect your financial interests.
When you have not received the commissions you believe you’ve earned from your sales work or your business’s sales representatives have filed a dispute over the commissions due to them, you need experienced legal counsel to advise you of your legal rights and obligations. Extensive case law has further refined the provisions of the Michigan Sales Representative Commission Act. A knowledgeable attorney from August Law can help you understand how the law affects you.
Contact us today for a free, no-obligation consultation to discuss your case with our legal team.
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