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Fillable Printable Sample Commission Agreement - GNYADA

Fillable Printable Sample Commission Agreement - GNYADA

Sample Commission Agreement - GNYADA

Sample Commission Agreement - GNYADA

Instructions for Completing
The Commission Agreement
Due to recent changes to the New York Labor Law along with recent court decisions, GNYADAs Employee
Rela)ons Plan is providing you with one example of a wri*en Commission Pay Plan Agreement. GNYADA
recommends very strongly that all dealers use such wri*en agreements for every commissioned employee.
Commission agreements must be in wri)ng and they must be signed by both the employee and the employer.
GNYADA recommends that dealers retain fully completed Commission Agreements for at least six (6) years
aer the employee’s employment has ended. Be sure to prepare and execute a new agreement if you change
the commission arrangement of one of your employees.
A Commission Agreement must contain all of the terms and condi)ons of employment, including, but not lim-
ited to, the following terms:
Descrip)on of how wages, salary, draw on commissions, commissions and all other amounts earned
are to be calculated;
Frequency of reconcilia)on between draw and earned commissions, where the wri*en agreement
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 termina)on of employment by either the employee or employer.
A few reminders about Commissions Agreements:
If there is no wri*en agreement, signed by both the employee and employer, the courts will presume
that the employee’s descrip)on of the commission agreement is accurate.
If there is no signed commission agreement, the employee is en)tled to payment according to the
terms the employee claims are in existence at that )me.
Dealers should not permit employees who have not signed a commission agreement to work at the
dealership. If an employee s)ll refuses to sign an agreement, it would be permissible to terminate
that employee.
The included Sample Commission Agreement is provided to you only as one sample format of a Commission
Agreement. We recommend that dealers are thorough in their compleon of any Commission Agreement be-
tween the dealer and commissioned employees.
Sample Commission Agreement
This Agreement sets forth how wages, salary, draw, commissions and other monies are earned and paid both during
employment and upon termina)on of employment. This Agreement does not create an employment
contract between ______________________________ and ______________________________.
Dealer Commissioned Employee
Employment remains at will, subject to termina)on at any )me for any reason with or without no)ce.
1. ______________________________ shall receive (check one)
o salary payable weekly at the rate of $ ____________.
o recoverable draw payable weekly at the rate of $ ____________.
2. Commissions will be paid on a o weekly or o monthly basis and shall be calculated as follows:
Commissions are “earned” for purposes of this Agreement only aer the following have occurred, and subject
to the following condi)ons:
Completed delivery of the vehicle, service, and/or parts, and
All funds related to the transac)on have actually been received by ______________________________
and are no longer subject to reversal by the customer, vendor, bank, financing and/or leasing company or
manufacturer.
In the event there is a reversal of the transac)on or any part of the transac)on, for any reason, the amount of the
commission will be recalculated and corresponding adjustments will be made.
Any monies paid to ______________________________ prior to the final determina)on of the “earned” commis-
sion shall be considered an “advance” and shall be subject to reversal or adjustment in accordance with the above.
In the event that any reversal occurs aer employment with ______________________________ ceases or is ter-
minated ______________________________ specifically reserves the right to recover such amounts from you in a
legal proceeding, if necessary.
Any monies drawn to meet minimum wage or over)me requirements will be reconciled monthly and deducted
from your commission payment.
Reconcilia)on of commissions will be done on a monthly basis. Adjustments to______________________________
compensa)on will be made no later than the end of the pay period following the period in which the commission
was earned.
3. Upon termina)on of employment, compensa)on shall be limited to actual deliveries as of that date.
This Agreement supersedes any prior understandings and agreements regarding compensa)on. It shall remain in
effect un)l superseded by a subsequent wri*en agreement, signed by both ___________________________ and
______________________________ .
________________________________________________________________________________________________
________________________________________________________________________________________________
Note to commissioned employees who are covered by a union contract: This Agreement is intended to set forth the
___________________________ pay plan and does not supersede the terms of any applicable collec)ve bargaining
agreement.
The Dealer must keep a copy of this form on file.
Commissioned Employee
Dealer
Commissioned Employee
Dealer
Dealer
Commissioned Employee
Dealer
Commissioned Employee
Dealer Date
Commissioned Employee Date
Dealer
12/11
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