VOICES FROM THE INDUSTRY: Employers: Are commission plans putting you at risk?
Many employers compensate their sales representatives, in whole or in part, through commission agreements or plans. The various benefits of such plans are readily apparent. Among other things, they can provide powerful incentives for salespersons to generate business, and they can assist employers in managing their costs and cash flow. However, lurking within these plans may be significant legal issues. Ill-defined or poorly-worded compensation plans can cause a number of legal problems and expose employers to significant liabilities. Generally, commissions…