New York Commission Sales Agreement

However, the new law requires more than just a written agreement; The handwriting contains specific terms. First, the new law provides that the agreement contains a detailed description of the calculation of wages, salaries, accounts, commissions and other funds earned and payable. Second, where mandated sellers are entitled to a draw refundable by the agreement (an advance on future commissions), the letter must also include the frequency with which the draw is brought into compliance. This provision was added to identify and correct any discrepancies between the employer and the worker sooner rather than thereafter. In addition, the agreement must specify how to calculate wages and other forms of compensation when the employment relationship is broken. On the basis of this presumption, it can be considered that if the conditions are missing or uncertain, the Department will resolve all disputes relating to the importance and conditions laid for the benefit of the employee. In Linder v. Innovative Commercial Systems LLC, 2013 NY Slip.Op. 51695(U) (Bransten, J.), applicant Part Gary Linder (“Linder”) filed a lawsuit against his former employer, Innovative Commercial Systems LLC (“ICS”), in order to recover sales commissions he believed were due after his termination. ICS is in the field of installation and maintenance of residential and commercial security systems. As a salesperson, Linder received commissions based on each new contract it has obtained for ICS, with a different percentage, based on whether it is an installation or maintenance contract. However, the actual payment of commissions was not paid to Linder at the time of awarding the contract, but when the customer paid the ICS invoices under that contract. This practice lasted several years and ICS regularly provided Linder with all documents relating to receivables and copies of cheques when customers made payments.

Linder has even contributed to collection efforts to obtain payments from troubled customers on its accounts. While attempts to collect delinquent accounts were becoming increasingly tight, Linder`s sales also fell thinner and he was fired in 2009. To continue to protect themselves, New York employers may wish to add a language that emphasizes that the agreement is not a labor agreement, that it is limited to compensation and that it does not promise to continue working in the company. Employers may also indicate in the agreement that the employment remains at their convenience and that the employment relationship may be terminated by both parties for some reason, with or without reason or announcement. Where possible, employers should avoid including in the agreement a reference to the duration of the agreement. The absence of a language indicating that the agreement applies for a fixed term will make it more difficult for a contracted seller to argue that the agreement was an employment contract. It is the employer`s responsibility to ensure that the required document is available. Otherwise, all the conditions that the delegated seller says will probably be binding.