Massachusetts Paying Employees | Drafting Commission Agreement

ARTICLES

You’ll be Damned if you Don’t Draft a Commissions Agreement That Protects Your Company from Paying Triple Damages and Attorneys’ Fees.

October 14, 2011

Many employees (especially in sales) receive a significant portion of their compensation via commissions--paying sales employees, for example, for bringing in customers who make purchases aligns the incentives of the employee with those of the employer.  This article examines a quirk in Massachusetts law which makes the language of the agreement between employee and employer detailing the commission especially important, and explains how poorly thought out drafting can lead to shocking liability for your business. 

- Summary by FizzLaw Team

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You’ll be Damned if you Don’t Draft a Commissions Agreement That Protects Your Company from Paying Triple Damages and Attorneys’ Fees.

AUTHOR

Adam Whitney

Adam Whitney

FizzLaw is a product of Legal Services Management (LSM). Also included in the LSM portfolio is Business Law Network, LLC (BLN). BLN sponsors a network of independent lawyers serving middle market and small businesses, and Legati, a business litigation service providing fixed fee prices for litigation.