Commission to become due, when
This law explains when a salesperson gets paid their commission. First, whatever the written contract says goes. If there is no contract or it is unclear, the commission is owed when the customer gets the product or service and pays for it. If that still does not answer it, the commission is owed when the company accepts the order and gets paid, unless the industry has a different common practice. When a sales contract ends, any commissions already owed must be paid within 30 days. Any commissions that come due after the contract ends must also be paid within 30 days of when they become owed. A salesperson can still collect commissions on orders placed before the contract ended, even if delivery happens after.
407.912. to become due, when — of , all due, when. — 1. When a commission becomes due shall be determined in the following manner:
(1) The written terms of the contract between the and shall control;
(2) If there is no written contract, or if the terms of the written contract do not provide when the commission becomes due, or the terms are or unclear, the commission shall be paid when the product or is delivered and accepted by the purchaser or the principal receives ;
(3) If neither (1) nor (2) of this can be used to clearly when the commission becomes due, then the commission shall be due on the date the principal accepts the and receives satisfaction in full, unless the prevalent in this state for the parties' particular industry is different, in which event such custom and usage shall .
2. Nothing in sections 407.911 to 407.915 shall be to impair a sales representative from collecting commissions on products or services ordered prior to the between the principal and the sales representative but delivered and accepted by the purchaser after such termination.
3. When the contract between a sales representative and a principal is terminated, all commissions then due shall be paid within thirty days of such termination. Any and all commissions which become due after the date of such termination shall be paid within thirty days of becoming due.
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Source & history notes
(L. 1989 S.B. 192 § 1 subsecs. 2, 3, 4, A.L. 2005 S.B. 211)
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