Getting Paid Commissions When Someone Else Completes The Deal

It is not uncommon for employers to try to deny a salesperson or a broker commissions in a situation where that employee was the one ultimately responsible for making the deal, but where the deal was formally completed by someone else, especially if the commissions agreements states that commissions are only earned when the deal is signed off on, or that commissions are only paid if the employee is employed with the company on the date commissions are paid out. The law recognizes the potential unfairness of these types of situations, and although the details of the commission agreement in a specific situation are important, there are general legal principals that must be taken into account: 

For instance, it is well-established that “he who shakes the tree is the one to gather the fruit.” Willson v. Turner Resilient Floors (1949) .  The California courts have long held that commissions must be paid to salespersons who are the procuring cause of the sale regardless of the termination of the employment.” DLSE Opinion Letter 2002.06.13-2 citing Watson v. Wood Dimensions (1989).  “When the broker is in fact the primary procuring cause, the law will not deprive him of his commission because the negotiations were completed through someone else...” E.A. Strout Westerm Realty Agency, Inc. v. Lewis (1967).   

Thus, if there is a dispute over pending commissions, the determination of how much commissions, if any, are due requires both looking into the specific language of the commissions agreement while also considering the above-mentioned legal  (and logical) principles.