Visitor Question

How are lost commissions calculated in lost wages compensation?

Submitted By: PBJ (Cincinnati, Ohio)

I am a sales executive and 40-50% of my total annual income comes from commissions earned. I was involved in a car accident that reduced my ability to do my job as effectively and efficiently as normal for 7 months prior to surgery due to the severe pain.

I had extensive surgery to repair a torn labrum, torn bicep, completely torn rotator cuff and bone chip removal from a partially broken clavical at the eighth month. The surgery and recovery time was over 6 months.

During this 14 months my sales pipeline diminished significantly and when I went out on disability during the surgery, the deals I did have were given to someone else to close.

I received NONE of the commissions I worked for!!! Is there some kind of formula I can use to prove loss of compensation for commissions and year-end bonuses based on commissions, and sales goal achievement using former year and future year commission as an average? What can I do here? Thank you.

Disclaimer: Our response is not formal legal advice and does not create an attorney-client relationship. It is generic legal information based on the very limited information provided. Do not rely upon the information in our response, or anywhere else on this site, when deciding the proper course of a legal matter. Always get a personalized case review from a local attorney.

Answer

Dear PBJ,

In your case, proving the amount of your commissions should be relatively easy. Rely on the formulas used when calculating your commissions before your injuries. If you earned the commissions, ask your employer to pay them.

Without knowing the proprietary formula used by your employer for calculating commissions and year-end bonuses, it is impossible to know the exact manner in which those amounts should be calculated.

If your employer won’t cooperate, you have three choices. You can file suit against your employer, contact the Ohio Bureau of Wage and Hour Administration, or both.

The Ohio Bureau of Wage and Hour Administration investigates complaints involving the following:

– Minimum wage not being paid – Overtime not being paid – Unauthorized deductions, and

– Last paychecks being held

Here’s the form to file a wage complaint with the Ohio Bureau of Wage and Hour Administration.

The above is general information. Laws change frequently, and across jurisdictions. You should get a personalized case evaluation from a licensed attorney. Find a local attorney to give you a free case review here , or call (888) 647-2490.

Best of luck,

Published: November 3, 2015

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