HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
84
COMMISSION AGREEMENTS
Any employee who is to be paid a commission is required to enter into a written commission agreement to be
signed by both the employee and the employer.
At a minimum, the commission agreement shall contain the following terms:
•
Description of how wages, salary, draw on commissions, commissions and all other amounts earned are to be
calculated;
•
Frequency of reconciliation between draw and earned commissions, where the writing provides for a
recoverable draw; and
•
Details relevant to payment of wages, salary, draw, commissions and all other monies earned and payable in
the case of termination of employment by either party.
Commissions
Every employee who is paid a commission must sign a written commission agreement setting forth the terms of
their compensation. An employee should not continue working for the dealership until he or she signs the written
commission agreement.