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Commission Rights Clarified Under New York Law.

Pachter v. Bernard Hodes Group, Inc., __ N.Y.3d __, __ N.Y.S. 2d __ (2008) — On June 10, 2008, New York’s highest court addressed the important issue of when a sales commission is “earned,” and thus not subject to deductions for expenses by an employer under the state’s wage and hour laws. The Court held that, in the absence of an agreement to the contrary, commissions are earned when a salesperson “produces a person ready and willing to enter a contract upon his [or her] employer’s terms.”
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