Thursday, December 15, 2011
Commission payment being deferred - is this legal?
I am an independent sales representative (I am a contract worker/1099 - not an employee). I am paid strictly on commission. One of the companies that I represent made a new policy that sales payments made by clients will be deferred into 6 month commission payments to the independent sales representative. The company I represent offers clients 2 choices: the client can pay $30,000 over 6 months (and in that case, I am paid $1000 per month for 6 months), or they can pay $25,000 in an upfront lump sum. This client chose to pay in a $25,000 lump sum. When I received my commission check, it was for $833.33. I was told that the company has decided to break out commission over 6 months. So...the client paid up front and got the discount for immediate payment. But my commission is paid in 6 installments and at the lower rate because the client paid in full up front. I am in Kansas. the co I represent is in Fl. Is this legal?
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