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Current Developments in the Commercial Divisions of the
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Posted: November 20, 2016

At-Will Sales Employee Not Entitled to Post-Termination Commissions

On November 18, 2016, the Fourth Department issued a decision in Moore-Haarr v. Z-AXIS, Inc., 2016 NY Slip Op. 07788, holding that a former employee was not entitled to commissions on sales made before her employment ended, explaining:

The sales for which plaintiff seeks the commissions were made by defendant, and the goods were shipped to and paid for by defendant’s customers, after defendant terminated its relationship with plaintiff. According to plaintiff, however, she earned the commissions before her termination, because they were brought about by sales quotes or solicitations prepared before such termination. Supreme Court granted defendants’ motion for summary judgment only in part, dismissing the complaint against defendant Michael Allen, and we agree with defendants that the court should have granted their motion in its entirety. An at-will sales representative, agent, or employee is not entitled to post-termination commissions absent an agreement expressly providing for such commissions. On their motion, defendants established as a matter of law that there was no such express agreement between the parties and indeed that the subject of post-termination commissions was never discussed during the parties’ relationship, and plaintiff failed to raise a triable question of fact in opposition to the motion.

(Internal quotations and citations omitted).

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