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Illinois law protects payouts from commissions

On Behalf of | Oct 23, 2022 | Wage & Hour Laws

Employer’s often take advantage of their sales representatives who earn commissions. For example, if you end your contract or get fired, your former company might attempt to withhold your money. However, according to the Sales Representative Act, all commissions must pay out within 13 days of contract termination.

Whether the company believes you will not understand your rights or they act in ignorance, it is against the law to withhold your commission after a contract ends. Continue reading to learn more about getting your final commission after completing an independent contract.

Incomplete transactions are not an excuse

When you earn a commission, the payment does not come right away. The transaction must complete before you make any money. However, do not let your contractor use this as an excuse. If the sale has not closed by the time your contract ends, they still owe you the payment. The Sales Representative Act also states that commissions that become due after termination must pay out within 13 days of the due date. Your company cannot fire you and withhold the commission because the transaction did not go through yet.

You cannot waive your rights

Illinois will not honor the contract even if you unknowingly sign a contract that waives your rights. So, if your company tries to employ deceptive practices, they still owe you money from your earned commissions. If the court finds your employer purposefully withheld cash from you, they may owe you three times your original commission.

Do not give up on your earned commissions because your former employer puts up a fight. Illinois law guarantees that legally made sales commissions must pay out within 13 days.