My contract states that the commission is “earned” when I send in the signed agreement from the customer, then I am paid within 2 weeks of the bill being received.
The problem is, most bills take 6-12 months to get paid, as we deal with big slow corporate brands. I put in my 2 weeks, offered to find/hire/train my replacement, help with anything else he wants, and told him he could call me anytime in the future and I'd help with anything he needed, and that I appreciate and respect him a lot.
He asked me to stay longer, and I told him we could probably work something out, and asked if he could pay me my commission early so I wouldn't have to chase him throughout the year.
I am paid 20%, but 50K base + 10% when they pay, then july 1 and dec 1 we deduct what he's paid me from 20% and he cuts me the rest. He calls this a “bonus” but it's commission, and non-discretionary as it's based on a calculation and set on a certain date. Right now he has only paid me around 12-14% of the invoices for the 2nd half of this year, and a lot more coming.
He told me no, that's not how it works, and that if he's going to replace me the new person is going to expect to be paid my commissions that he owes me. I pointed out that there was no mutual understanding that I'd be forfeiting my earnings if I quit, and also the contract states nothing about what happens when I am terminated/resigning, only states when it is earned and payable, for which all of these contracts are already earned and they companies have committed to paying us… but it'll be after I leave.
He's giving me a bunch of examples of “industry standard” practices and “sorry to break it to you kid” talks. He's also trying to twist my words and tell me he's not paying me “severance and indefinite bonuses” if I'm quitting on him, but I keep straightening him out saying I'm not asking for any more than I already earned… I talked with 2 attorneys and they both said the same thing, that I should be paid regardless unless there was a mutual understanding.
It's quite a lot of money, and I feel like I should be paid for the hard work I already completed, not funding his next employee.
Sadly I think it's because I didn't give him more than 2 weeks (2 weeks is what's required on my contract) and he has been trying to force a bunch of new restrictive covenants on me the past year that I'm refusing unless he's willing to give me a raise (the contracts he sent me were riddled with restrictive covenants/tripwire and it was for less money).
It stinks, I've grown his business from 400k/year to multi millions, never had a raise or equity despite asking, and then was fed up with all the crap and am quitting as amicably and professionally as I can, only to be met with his anger and telling me he isn't paying me and I'm pissing him off for asking.
I would hate to have to go to court, I'm going to file with the department of labor, any advice? I've got all the documentation that I need I believe.
I've read that the lawsuit is 3x what they owe you + my attorney's fees if I'm awarded, which is certainly worth it, but not without its wounds.