I am in Illinois and we recently had a salesperson resign at the end of Aug. We're in the process of running commissions payments for our August deals (and prior) and the question we have is: beyond this month, are we legally obligated to pay out the salesperson on any deals he closed during his tenure here? Some deals have not been provisioned or started billing (both are requred as per our comp plan in order for the salesperson to be paid out). We don't have language in our comp plan that states what happens after a salesperson leaves the company (which is an oversight on our part and will be resolved).

thanks for any help.

bsaxton:

I am in Illinois and we recently had a salesperson resign at the end of Aug. We're in the process of running commissions payments for our August deals (and prior) and the question we have is: beyond this month, are we legally obligated to pay out the salesperson on any deals he closed during his tenure here? Some deals have not been provisioned or started billing (both are requred as per our comp plan in order for the salesperson to be paid out). We don't have language in our comp plan that states what happens after a salesperson leaves the company (which is an oversight on our part and will be resolved).

 

thanks for any help.

Been there, having been saddled with a comp plan put together by a sales manager and executed without any HR oversight or consultation.

Seek counsel.  A lot of state-specific and circuit specific stuff wrapped up in that.