As we recently discussed here, a duly crafted commission agreement in New York (and in each state) is essential to minimize the risk of a large number of rights, including rights to alleged unpaid commissions and inappropriate payroll deductions. Indeed, in New York and other countries, a commission agreement signed in writing is necessary, in accordance with State law, without drawing adverse conclusions. As a sanction, the New York Labor Act creates the presumption that, if the terms of employment are not in writing, the terms and conditions presented by the mandated seller are the agreed terms of employment. If, and only if all three conditions are met, the exemption applies and the retail or service employer is not required to pay the delegated worker overtime pay equal to 11/2 times the standard rate of pay for all hours of more than 40 hours during a work week. As no written contract governed the agreement between the parties, inter alia, on the date of the commission, the Tribunal refused to legally reject the applicants` allegations that the employer had breached the oral contract for the payment of commissions. Furthermore, the Court of First Instance did not reject the applicants` allegation that the company`s commission/voting process constituted an unlawful deduction from salary. Referring to a precedent, the General Court found that the action under Article 193 was not duplicated with the action for infringement, whereas the application sought recovery of the same commission indemnity. This judgment also revived the applicants` rights under Article 198.1-a of the Labour Law to a penalty of 25% on wages and lawyers` fees due. An employer`s inability to write this letter or update its existing letter is based on the presumption that the terms and conditions of employment described by the delegated vendor and not by the employer are correct. Call the law firm of David S. Rich, LLC at (347) 941-0760, to discuss with a competent labor and labor attorney whether your company complies with commission laws and other wage and hour laws, or to hire a qualified attorney for unpaid commissions in New York City to defend your company in unpaid commission actions or other wage and hour disputes. New York Labor Law requires employers to have written agreements with each mandated vendor they employ. Employers who do not meet this requirement could face serious problems in the future.
That`s why we strongly recommend that all employers who have sales reps mandated in New York city immediately review existing commission plans to ensure that the plans meet all the requirements of New York law and that amending non-compliant plans should be a top priority. Gary and ICS had established a ”share price” over the years. In any case, Gary was not paid as soon as he found a qualified buyer. Instead, Gary was only paid if the client paid ICS….