Commissions
Under N.Y.S. law, an employer is required to comply with the following for commission agreements with its sales representatives requires:
- The terms of the agreement must be in writing, including the method by which the commission is to be computed and paid.
- The agreement must be retained for a period of at least 3 years.
- A sales representative is required to be paid his/her earned commission not later than 5 business days after the commission has been earned.
All employers of New York-based commissioned salespersons must therefore prepare a "writing" containing, at minimum, the following terms of employment: (1) a description of how wages, salary, draw on commissions, commissions, and all other amounts earned and payable are to be calculated; (2) the frequency of reconciliation between draw and earned commissions, where the writing provides for a recoverable draw; and (3) details regarding payment of wages, salary, draw, commissions and all other monies earned and payable in case of termination of employment by either party.
If you have any questions or need more information concerning your specific wage and hour issues, please call us at (914) 949-2700 or use our email form to get in touch with New York Labor and Employment Attorneys.