Commission Agreement
(FL)

Summary

This template commission agreement provides a starting point for drafting commission agreements for sales personnel. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This template is intended for private employers. It is based on federal law and Florida law but does not address other potential state law distinctions; thus, you should check any relevant state and local laws. When drafting a commission agreement, you should pay particular attention to specifying when the employee earns the commission and at what point an employee's right to receive a commission ends. There is not currently a Florida statute that governs the payment of commissions for employees. Under Florida case law, commissions are generally earned according to the terms of an employment contract, whether written or oral. If an employment contract is silent on post-termination rights and the right of accrual, commissions are generally earned when a sale is made, even if the goods or services sold are delivered after an employee's termination. Comerford v. Sunshine Network, 710 So. 2d 197, 198 (Fla. Dist. Ct. App. 1998). However, if the employer has a policy or practice of not paying commissions post-termination, that policy or practice will control. See Lincare Holdings, Inc. v. Ford, 307 So. 3d 905, 911 (Fla. Dist. Ct. App. 2020) When drafting a commission agreement, you should pay attention to specifying when the employee earns the commission and at what point an employee's right to a commission ends. For information on drafting commission agreements, see Commission Agreement Drafting Techniques. Also, see Commission Payment State Law Survey (Including upon Termination of Employment) and Commission Plan Drafting Checklist. For information on other state-specific laws concerning commission agreements, see the Wage and Hour Requirements column of the Wage and Hour State Practice Notes Chart.