How to Make a Claim for Unpaid Sales Commissions in Alabama

Claims for unpaid sales commissions in Alabama can be confusing and stressful. North Alabama is home to multiple industries which employ the use of skilled machinists and manufacturers for parts used in the aerospace, defense, and automotive industries. Those manufacturers rely on sales representatives, paid on commissions, to sell their parts wholesale.

Unfortunately, the abuse of commission based sales representatives became so pervasive that the Alabama Legislature created a law to safeguarded earned commissions under the Alabama Sales Representative’s Commission Contracts Act codified under Title 8, Chapter 24 of the Code of Alabama. This legislation outlines the obligations of principals (such as manufacturers or distributors) towards their sales representatives and establishes the framework for commission payments.

If you believe you are owed unpaid commissions under the Act, an experienced lawyer from Siniard Law, LLC can help.

The Law on Unpaid Sales Commissions in Alabama

The Alabama Sales Representative’s Commission Contracts Act defines key terms that may affect the success of your unpaid sales commissions claim. Here are some of the key definitions:

• Commission: Compensation that accrues to a sales representative, calculated as a percentage of the dollar amount of certain orders or sales.
• Principal: An individual or entity that manufactures, produces, imports, or distributes a product for resale, utilizes sales representatives to solicit orders, and compensates these representatives, wholly or partially, through commissions.
• Sales Representative: A person who solicits orders on behalf of a principal for the purchase of products at wholesale but does not include individuals who purchase for their own account for resale or those engaged in home solicitation sales.

Here are some other applicable principles to be aware of if you are making a claim for unpaid sales commissions in Alabama:

• The contract between the principal and the sales representative determines when a commission is due.
• If the contract does not specify a payment time, past practices between the parties will prevail. In the absence of past practices, the prevailing custom and usage in the relevant business sector within Alabama will apply.
• All commissions due at the time of contract termination must be paid within 30 days.
• Principals who intentionally fail to pay the owed commissions may be liable for triple the amount of the unpaid commission, in addition to attorney’s fees and court costs.

What Should I Do If I Have a Claim for Unpaid Sales Commissions?

If you are a sales representative and you are owed commissions on sales made on behalf of a manufacturer, collect the following information:

• Your entire employment agreement
• Any written agreement or promise to pay you sales commissions
• All records in your possession which evidence sales you have made on behalf of the principal or employer, including the date of sale, the sale amount, the duration of the sale or sales contract, and the amount of commissions you are owed
• Written documentation of the principal or employer’s failure and/or refusal to pay your commissions
• Documentation showing when and how you were paid commissions in the past

Huntsville Lawyers for Unpaid Sales Commissions

Sales representatives who believe they have been wrongfully denied their earned commission should seek the advice of a Huntsville contract lawyer immediately. A lawyer can help you recover triple damages, attorney’s fees, and court costs, making you whole for your breach of contract claim.  Contact us to us today to let our attorneys evaluate your claim for unpaid sales commissions.