Denying Commission to Consultant

A consultant resigned from our company to take a salaried job, but thought he still had the right to be paid past commissions. This note explained the situation to him, and we have remained close, personal friends. Tammy was our bookkeeper; Karen and Kelly were clients. All others were consultants.
From: Bill Frank at CareerLab [wsfrank@careerlab.com]
Sent: Tuesday, January 11, 20— 8:56 AM
To: Lonnie Broomfield
Subject: Answers to your questions . . .

Lonnie,

  1. I called Tammy about the W-2 and she said she was mailing it that day. Your wife should have received it. If not, let me know and I will follow up.

  • I am mailing the $150 commission check for Karen today.
  • Regarding Kelly Blackstone, you participated in the sale of the first phase and were paid full commission on that. When Kelly came to Denver, Mark Johnson spent the morning with her; I took her and Mitchell (her husband) to lunch, and laid groundwork for a subsequent sale. Then I created a custom program for her, and Carole, Mark, and I called her and Mitchell and sold them an additional $5100 program. (We have stopped selling $12,000 deals; they are too hard to predict and control.)
  • Lonnie, since you were not at all involved in the sale, I don't believe we owe you a commission.
     
    Also, when employees leave a company, their pay ends on their last day of employment—except for severance. I'm paying you commission on Karen because I recognize the key role you played in securing her business and in maintaining her as a client.  Although most corporations would have ended those payments when you left, I elected to continue them.
     
    Last of all, office expenses include such things as: 1) office space, 2) furniture, 3) computer, 4) telephone, 5) copier, 6) FedEx, and 7) storage of your vehicle. If we totaled these expenses, they would exceed any commission.

      Lonnie, I've researched this issue at length with Mark, Carole, and even with Sandy [our Chief Operating Officer], to be sure I'm not being unfair in this, and all of us see things the same way.
       
      I've worked with everyone on the team to find a solution fair to all of us—and I'm pleased that you've found a position where billable hours and sales commissions are a thing of the past.
      :B
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