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FMLA and Sales Representative Pay

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Latest post Thu, Aug 11 2011 11:52 AM by Drew. 3 replies.
  • Wed, Aug 10 2011 11:04 PM

    FMLA and Sales Representative Pay

    I live and work in NJ. I am a commissioned sales rep (my pay is part base pay, part commission). I am about to go on maternity leave under FMLA and was just informed by my manager that not only would I not receive commission for sales made in my territory during my leave, but also that I would not receive any quota relief in spite of my leave.

    So, in other words, I am going to be held to the same quota (in spite of being out on leave for 12 weeks under FMLA) AND any sales that come in from my customers (and I have a defined account list) will not count towards that quota (nevermind receive commission payments).

    This doesn't seem legal. Any attorneys or HR professionals with insight on this?

  • Wed, Aug 10 2011 11:28 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,431

    Re: FMLA and Sales Representative Pay

    Not an attorney not still in HR---but still remember how some quirky quota formulas might work.

    You gotta lay out the details of your quota and commission  math. My guess is that with a step function quota  your commission component once you return is likley to get severely docked for the peformance gap over the 12 weeks you were out. Its a constructive pay cut for being out. I'd review that with counsel--you may well have a point.

    I see no legal fault in not paying you for commissions while you were out--but I think it is shortsighted bordering on the unfair if you essentially maintained a fixed book of repeat accounts and the repeats are essentially due to your continued service   If you were out for a 4 day vacation anda sale fromone of your accounts came in--would you get the commission, how about 10 days, how is plan worded.  Many sales relationships are long term--management may be unfortunately short term focuses--but thats not illegal. My daughter services a handful of major accounts-and prospects -I assure you she would find a way to maintain contact for 11.5 weeks of the 12 in question. If she developed the account---she will make sure she gets 100% credit. Politely, of course.

     



  • Thu, Aug 11 2011 10:19 AM In reply to

    • Beth3
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Mar 24 2001
    • Posts 5,466

    Re: FMLA and Sales Representative Pay

    HR professional here.  In order to get some clarity on your commission pay, let me ask you a hypothetical question. 

    Let's say you were taking a 4 week paid vacation and forget whether you would receive base pay during that time.  Under your company's vacation and commission policy, how would your commissions be handled?  I presume you would receive commission on sales made before you took a lengthy vacation while you were on vacation.  Yes?  (This assumes there's a lag time between the sale being made and the commission being paid.)

    Would you receive commissions made on sales in your territory while you were on a 4 week cruise to Timbuktu and not working?  Would you receive quota relief while you were on vacation?

  • Thu, Aug 11 2011 11:52 AM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,431

    Re: FMLA and Sales Representative Pay

    We, and especially Beth need some feedback if you want a realistic guess as to where you stand........

    Also if you were out on some form of paid disability leave--how would your commissions and quota be handled?



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