Michigan Sales Commission Disputes

The Michigan Sales Representative Act (MCL 600.2961) provides strong remedies for sales representatives who are being denied sales commissions that were rightfully earned.

The Michigan Sales Representative Act protects sales representatives in situations where the dispute is over whether a commission is actually owed, as well as in situations where the only dispute is the amount of sales commissions owed. The Michigan Sales Representative Act also protects sales representatives who procure a sale and are then terminated by the principal who hopes to avoid paying the sales representative the commissions that were rightfully earned.

The Michigan Sales Representative Act was enacted in 1992 and provides a myriad of protections for sales representatives in Michigan. First, a principal must pay independent sales representatives according to the terms and provisions of any written sales commission agreement that is in existence between the principal and the sales representative.

Second, a principal must pay their sales representative on time or in a timely manner. Similarly, if a sales representative is terminated, a principal must pay a sales representative any commissions that are due and owing at the time of termination within 45 days after termination.

Further, if any commissions come due after the sales representative is terminated, the principal must pay those commissions within 45 days after those commissions come due.

The Michigan Sales Representative Act also provides that a principal who fails to pay a sales commission that is due and owing can be forced to pay triple damages (within certain limits), plus court costs and reasonable attorney’s fees.

As a Michigan sales commission dispute attorney, I represent sales representatives who are being denied sales commissions that were rightfully earned.

In representing clients in these cases, I draw on my extensive litigation experience in order to pursue the best possible result for my client under the circumstances. I am prepared to handle my clients’ cases throughout the litigation process through trial, and am also well-versed in alternative dispute resolution methods (ADR) – such as arbitration, mediation, and facilitation – that can often prove helpful in resolving a sales commission dispute in my clients’ favor.

When representing clients in sales commission disputes, I take a very aggressive approach in order to obtain the compensation that my clients have earned. For example, I will use, as appropriate, the full range of discovery tools available to attorneys and their clients in civil litigation cases, such as interrogatories, requests for production of documents, requests for admissions, and subpoenas to third parties in order to gather all of the information and documentation necessary to support my clients’ cases.

Finally, and most importantly to clients, in most sales commission dispute cases I represent clients on a contingency basis, meaning that the clients will not be charged attorney fees unless I obtain a recovery for them.

If you are experiencing a dispute over sales commissions that are owed to you, know that the Michigan Sales Representative Act protects your rights. Please feel free to contact me for more information on how I may be able to assist you.