The Mistake of a Business Owner Regarding Commission Based Compensation
In Minnesota, an employer must promptly pay a salesperson commission earned through the last day of work. Commissions earned through the last day of work “means commissions due to services or merchandise which have actually been delivered to or accepted by the customer by the final day of the salesperson’s employment.” A mistake that business owners make is not promptly paying commissioned salespersons after the employment has ended. Another mistake is not understanding that independent contractors are generally also covered under this law. Prompt payment depends on the circumstances of the commission salesperson’s end of working with your business. If the salesperson...
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