1. In Florida, workers are entitled to unpaid commissions and bonuses under contract law.
2. Common commission disputes include payment of commission tails post-termination, recategorizing new accounts as house accounts, and reducing commission percentage after sales were made.
3. Bonus disputes often concern entitlement to bonuses post-termination and withholding of bonuses under a “for cause” provision of an employment agreement. – Commissions must be paid after work relationship ends, unless there is a mutual understanding that they are not due.
– Ways for a company to establish a mutual understanding that commissions are not due post-termination include a signed employment agreement, an acknowledged employee handbook or set of policies, the individual being responsible for providing services associated with the sale, or a recognized custom in the business that the right to commissions terminates with employment.
– Whether an individual has a contractual right to commissions or bonuses may require a careful analysis of all agreements, policies, practices, and other facts that may be evidenced in a case. Entitlement to commissions or bonuses may be based on alleged oral contracts and a written agreement is not required. – A formal written agreement is not required, but it is prudent for companies and workers to put their agreement into writing.
– The amount of damages for unpaid commissions or bonuses in Florida depends on the type of claim, including unpaid wages, breach of contract, and unjust enrichment.
– Punitive damages are generally not available for claims of unpaid wages, breach of contract, or unjust enrichment, but can be recovered in rare situations where a company intentionally misrepresents the amount of commissions or bonuses. 1. Unpaid commissions and bonuses are considered “unpaid wages” under Florida Statute § 448, and attorney’s fees can be recovered if the party prevails in a civil action for unpaid wages.
2. Florida law allows for the recovery of attorney’s fees to incentivize attorneys to file and litigate unpaid wage lawsuits, even for relatively small amounts of unpaid wages.
3. The statute of limitations for a breach of contract claim for unpaid commissions or bonuses is four years, while the statute of limitations for an unpaid wages claim under Florida Statute § 448 is two years. Filing within the two-year statute of limitations is important to ensure that attorney fees are recoverable.
4. It is important to file a lawsuit as soon as possible after learning of unpaid commissions or bonuses, as delay can result in fading memories and deleted documents, which can hinder the evidence needed to win a case. Additionally, delay may result in the inability to recover unpaid commission tails. – There are no pre-suit filing requirements in Florida for unpaid commissions or bonuses.
– Cantrell Astbury Kranz, P.A. often sends a pre-suit demand letter and, if necessary, quickly files a lawsuit to recover unpaid commissions or bonuses.
– The law firm limits the number of unpaid wage claims they take on to allocate necessary resources and give each client’s case the time and resources needed to obtain the best possible result.
– The firm focuses on core competencies, including unpaid wage claims involving commissions or bonuses, and their attorneys are committed to working tirelessly on behalf of their clients. – Cantrell Astbury Kranz, P.A. is a litigation boutique that focuses on non-compete and unfair competition disputes, employment law, and business disputes.
– The firm serves clients in Florida and Georgia, including cities such as St. Petersburg, Tampa, Clearwater, Orlando, Sarasota, and Miami.
– They also represent clients in Savannah, Macon, Augusta, and Atlanta, among other locations in Georgia.
Frequently Asked Questions on Unpaid Commissions and Bonuses in Florida
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