Owed Commissions! Help!

Crapgame44 · 08-25-2009, 01:58 PM

Hi, new to this blog and it already looks like a great resource. Was wondering if any fellow agents have any advise on collecting commisions owed to them by a former employeer? I am owed approx. $10K in Florida. I have been told that the quickest, cheapest way is to go to small claims court but that the max awarded their is only $5K. I have also contacted a few lawyers that would take on the case but say that that way could drag on for a long time. Any advice???

pomfin · 08-25-2009, 02:03 PM

Originally Posted by Crapgame44

Hi, new to this blog and it already looks like a great resource. Was wondering if any fellow agents have any advise on collecting commisions owed to them by a former employeer? I am owed approx. $10K in Florida. I have been told that the quickest, cheapest way is to go to small claims court but that the max awarded their is only $5K. I have also contacted a few lawyers that would take on the case but say that that way could drag on for a long time. Any advice???

How would that happened? Most of my agents get paid directly from carriers. To your question, there is no other way to get back than what you have said.

magagent · 08-25-2009, 02:03 PM

Does this involve Medicare Advantage products?

healthagent · 08-25-2009, 02:03 PM

Retain an attorney and have him write up a letter of demand and intent to sue. For a modest fee he'll draft a nice threatening letter on his lawfirm's letterhead. Have it send return receipt.

You'd be surprised what a letter from a law office will do to change people's attitudes.

I have an association member who was in your exact same position; was owed commissions and when she confronted her agency was basically told to pound sand.

She took my advice. The same day the agency received the letter she got a call and all of a sudden they cut a check.

You need to have everything outlined and obviously be able to prove you're owed the money.

These agencies COUNT on you to just go away.

Crapgame44 · 08-25-2009, 02:13 PM

Thanks, But what if he digs in and trys to use delaying tactics? Could it drag on fro years? I have excellant records also

healthagent · 08-25-2009, 02:32 PM

If it's out of small claims court then yes, it can drag on for over a year. They can also appeal the decision.

That said, not many agencies are actually going to show up in court when they not only know they owe commissions but know you can prove it. They would have a very hard time obtaining counsel.

Also, you're suing them - not the other way around. They'd have to decide whether it's worth their costs to go to trail over just paying you what's owed.

In fact, if their position was "fine, we'll be there" they likely know:

A) Can't prove you're owed the money
B) You're not owed the money.

Norwayguy · 08-25-2009, 02:35 PM

Originally Posted by healthagent

If it's out of small claims court then yes, it can drag on for over a year. They can also appeal the decision.

That said, not many agencies are actually going to show up in court when they not only know they owe commissions but know you can prove it. They would have a very hard time obtaining counsel.

Also, you're suing them - not the other way around. They'd have to decide whether it's worth their costs to go to trail over just paying you what's owed.

So very true but there can be other factors...Jurisdiction of the court...If the agency resides accross the country you may need to sue in federal court.