2001 Minnesota Statutes

     181.145 Prompt payment of commissions to commission 
  salespeople. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, "commission salesperson" means a person who is paid on 
 the basis of commissions for sales and who is not covered by 
 sections 181.13 and 181.14 because the person is an independent 
 contractor.  For the purposes of this section, the phrase 
 "commissions earned through the last day of employment" means 
 commissions due for services or merchandise which have actually 
 been delivered to and accepted by the customer by the final day 
 of the salesperson's employment.  

    Subd. 2.    Prompt payment required.  (a) When any 
 person, firm, company, association, or corporation employing a 
 commission salesperson in this state terminates the salesperson, 
 or when the salesperson resigns that position, the employer 
 shall promptly pay the salesperson, at the usual place of 
 payment, commissions earned through the last day of employment 
 or be liable to the salesperson for the penalty provided under 
 subdivision 3 in addition to any earned commissions unless the 
 employee requests that the commissions be sent to the employee 
 through the mails.  If, in accordance with a request by the 
 employee, the employee's commissions are sent to the employee 
 through the mail, the commissions shall be deemed to have been 
 paid as of the date of their postmark for the purposes of this 
 section.  

    (b) If the employer terminates the salesperson or if the 
 salesperson resigns giving at least five days' written notice, 
 the employer shall pay the salesperson's commissions earned 
 through the last day of employment on demand no later than three 
 working days after the salesperson's last day of work.  

    (c) If the salesperson resigns without giving at least five 
 days' written notice, the employer shall pay the salesperson's 
 commissions earned through the last day of employment on demand 
 no later than six working days after the salesperson's last day 
 of work.  

    (d) Notwithstanding the provisions of paragraphs (b) and 
 (c), if the terminated or resigning salesperson was, during 
 employment, entrusted with the collection, disbursement, or 
 handling of money or property, the employer has ten working days 
 after the termination of employment to audit and adjust the 
 accounts of the salesperson before the salesperson can demand 
 commissions earned through the last day of employment.  In such 
 cases, the penalty provided in subdivision 3 shall apply only 
 from the date of demand made after the expiration of the ten 
 working day audit period.  

    Subd. 3.    Penalty for nonprompt payment.  If the 
 employer fails to pay the salesperson commissions earned through 
 the last day of employment on demand within the applicable 
 period as provided under subdivision 2, the employer shall be 
 liable to the salesperson, in addition to earned commissions, 
 for a penalty for each day, not exceeding 15 days, which the 
 employer is late in making full payment or satisfactory 
 settlement to the salesperson for the commissions earned through 
 the last day of employment.  The daily penalty shall be in an 
 amount equal to 1/15 of the salesperson's commissions earned 
 through the last day of employment which are still unpaid at the 
 time that the penalty will be assessed.  

    Subd. 4.    Amount of commission disputed.  (a) When 
 there is a dispute concerning the amount of the salesperson's 
 commissions earned through the last day of employment or whether 
 the employer has properly audited and adjusted the salesperson's 
 account, the penalty provided in subdivision 3 shall not apply 
 if the employer pays the amount it in good faith believes is 
 owed the salesperson for commissions earned through the last day 
 of employment within the applicable period as provided under 
 subdivision 2; except that, if the dispute is later adjudicated 
 and it is determined that the salesperson's commissions earned 
 through the last day of employment were greater than the amount 
 paid by the employer, the penalty provided in subdivision 3 
 shall apply.  

    (b) If a dispute under this subdivision is later 
 adjudicated and it is determined that the salesperson was not 
 promptly paid commissions earned through the last day of 
 employment as provided under subdivision 2, the employer shall 
 pay reasonable attorney's fees incurred by the salesperson. 

    Subd. 5.    Commissions earned after last day of 
 employment.  Nothing in this section shall be construed to 
 impair a commission salesperson from collecting commissions on 
 merchandise ordered prior to the last day of employment but 
 delivered and accepted after termination of employment.  
 However, the penalties prescribed in subdivision 3 apply only 
 with respect to the payment of commissions earned through the 
 last day of employment. 

    HIST: 1984 c 446 s 3; 1986 c 444