image credit: Adobe Stock

Texas Supreme Court Clarifies Standard for Payment of Commissions When Agreement Is Silent

June 2, 2022


For many years, an oft-litigated question concerned whether a former employee was owed the commissions on sales made prior to the employee’s discharge from employment. Sometimes employment agreements were clear on the issue, such as by providing unambiguously that commissions would be paid when the employer received payment for a completed sale. Frequently, however, employment agreements were less than clear as to when commissions would be paid to former employees. Over the years, courts ruled in different ways and applied different standards when determining whether a former employee was entitled to commissions on sales made prior to an employment termination. On May 20, in Perthuis v. Baylor Miraca Genetics Laboratories LLC, the Supreme Court of Texas clarified the standard to be applied in those situations.

Read More on SHRM