Unpaid Commissions

Missouri has specific statutes relating to claims for unpaid commissions. Under Section 407.913, RSMo:

Any principal who fails to timely pay the sales representative commissions earned by such sales representative shall be liable to the sales representative in a civil action for the actual damages sustained by the sales representative and an additional amount as if the sales representative were still earning commissions calculated on an annualized pro rata basis from the date of termination to the date of payment. In addition the court may award reasonable attorney’s fees and costs to the prevailing party .

When these claims arise, there is often some dispute as to when the commission becomes due or owed. As to that question, the following is considered in order of priority: (1) the written terms of any contract; (2) when the product or service is delivered and accepted or the principal receives satisfaction in full; or (3) on the date the principal accepts the order and receives satisfaction in full, unless the industry standard is different, in which event the industry standard prevails. Section 407.912, RSMo.

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