Unpaid Sales Commissions? Get Clear Answers About Your Commission Dispute

A sales representative commission agreement dispute is a disagreement about what commission is owed, when it must be paid, or how it is calculated. In Florida, the written contract usually decides most of these questions, and payment records and emails fill in the gaps. KEW Legal, a business law firm with offices in Coral Gables and Sunny Isles Beach, works with business clients on these disputes across Miami-Dade and South Florida. This page explains how these disputes work, what usually causes them, and what the next steps often look like.

What a Sales Representative Commission Agreement Dispute Involves

A commission dispute is a disagreement over money one side says is owed and the other side disputes. It usually centers on three questions: how much is owed, when it is payable, and whether the event that triggers the commission actually happened.

The first step is to identify the relationship. An independent sales representative usually works under a sales representative agreement and is paid by commission. A W-2 employee on a commission plan is paid under the employer’s pay practices and any written plan. The legal framework is different for each.

Common parties include:

• Manufacturers, distributors, service companies and property sellers
• Individual sales reps or sales agencies
• Business owners who engage outside sellers

Key documents usually include the agreement, commission schedules, customer invoices, payment statements, and emails. Keep every one of them, even if they seem minor.

How Florida Law Treats Sales Representative Contracts

Florida courts usually start with the written contract. When the contract is silent on a point, the parties’ conduct and written communications become important evidence.

Time limits matter. A contract clause that sets a shorter period than the statute allows is void, under Fla. Stat. § 95.03.

An oral or partly written arrangement can still be enforceable. That is why records of what was agreed, such as texts and emails about rates or triggers, matter.

Pleading choices also matter.

Common Causes of Commission Disputes

Most commission fights come from a short list of recurring problems:

• Reduced commissions: a company changes the rate, base or split after a sale is made or after the rep has started work.
• Post-termination commissions: the parties disagree about sales closed after the relationship ends.
• Procuring cause: the dispute asks whether the rep actually produced the sale or lead that triggers commission.
• Chargebacks and clawbacks: deductions for cancelled orders, returns, credits or customer nonpayment.
• Records problems: unclear statements, missing sales data, or a refusal to share records.
• Territory changes: accounts are moved away from a rep in the middle of a sales cycle.

Account moves can raise a separate claim.

What Our Attorneys Handle for Reps and Companies

Our attorneys handle sales and commission issues as part of the firm’s business contract and vendor dispute work. The work usually starts with paperwork, not a courtroom.

• Review of existing agreements to find payment triggers, deadlines and dispute terms
• Drafting new commission agreements with clear formulas and payment schedules
• Demand letters and written requests for sales and payment records
• Settlement negotiation before any lawsuit is filed
• Litigation in Florida courts, including Miami-Dade and Broward County, when a claim cannot be resolved otherwise

Dispute-resolution clauses matter too. Under Florida law, an agreement contained in a record to arbitrate any existing or future controversy between the parties is generally valid, enforceable and irrevocable, except on a ground that exists at law or in equity for revoking a contract, and the court decides whether such an agreement exists. Many filed money damages cases must be sent to mediation on one party’s request, provided the requesting party is willing and able to pay the mediation costs or the costs can be equitably divided between the parties, subject to listed exceptions, under Fla. Stat. § 44.102. Fla. Stat. § 44.102 reads: “(2) A court, under rules adopted by the Supreme Court: (a) Must, upon request of one party, refer to mediation any filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless: 1.”

How a Commission Dispute Typically Moves Forward

A commission dispute usually moves through four steps, and the timing depends on the size of the claim and how the other side responds.

1. Intake. The attorney reviews the agreement, commission statements, invoices and correspondence in a confidential consultation.
2. Analysis. The attorney identifies which terms apply, which records are missing, and what the other side is relying on.
3. Demand. A written demand states the amount claimed and the basis for it, often with a records request.
4. Resolution. If talks stall, the parties may move to mediation or a lawsuit, depending on the contract and the facts.

Written settlement offers have set rules.

Talks are protected. Evidence of an offer to compromise a disputed claim is inadmissible to prove liability or the value of the claim, under Fla. Stat. § 90.408. Venue also matters. A lawsuit must be brought only in the county where the defendant resides, where the claim arose, or where the property in litigation is located; this rule does not apply to actions against nonresidents, under Fla. Stat. § 47.011.

Drafting and Reviewing Commission Terms Before a Dispute Starts

Most commission disputes are easier to prevent than to fix. Clear drafting closes the gaps that cause fights later.

• Define the trigger exactly: order signed, payment received, product shipped, or service completed.
• State the rate or formula, the base amount, and how splits or tiers work.
• Set payment dates, the statement format, and a deadline for disputing a statement.
• Address chargebacks, returns and cancellations, with limits and notice rules.
• Include records-access rights so a rep can check commissions.
• Write a clear rule for sales closed after termination.
• Choose a governing law and dispute method that fit where the parties actually do business.

Fee terms deserve attention. If a contract lets one party recover fees for enforcing it, the court may also allow reasonable fees to the other party when that party prevails, for contracts entered into on or after October 1, 1988, under Fla. Stat. § 57.105.

Why Clients Work With KEW Legal

KEW Legal focuses its practice on business law. The firm acts as outside general counsel for business owners and investors across Miami-Dade and South Florida.

• The firm has offices in Coral Gables and Sunny Isles Beach.
• Kristina E. Wilson is the responsible lawyer for this page and is one of the firm’s lawyers. Natalie Martinez is also one of the firm’s lawyers.
• The firm’s work covers partnership and vendor disputes, employee issues, contracts, commercial leases and business sales and succession.
• Support staff help with records organization and scheduling.

Whether you run the company or work as the rep, the review starts with the same documents. The firm explains options, costs and next steps in plain language.

Frequently Asked Questions

Talk With KEW Legal About Your Commission Dispute

A short commission statement or a payment that stopped can leave you unsure what to do next. Your first consultation is free, confidential and carries no obligation to continue. Gather the agreement, commission statements and key emails, then call 305-990-2300 or send us a message to talk through your situation.