Sales Rep Articles

Avoiding 5 percent owner status for retirement plan distribution purposes

Avoiding 5 percent owner status for retirement plan distribution purposes

Many individuals continue to work into their retirement years, whether due to financial need, personal desire or some other motivation. A meaningful portion of these workers are high-wage earners who pay tax at the maximum or near maximum income tax rates and do not wish to withdraw funds from their retirement accounts which in most cases are fully taxed at ordinary income tax rates.

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The ‘Windfall Gals’ Reject Manufacturer’s Contention That Paying the Rep Was a Windfall

The ‘Windfall Gals’ Reject Manufacturer’s Contention That Paying the Rep Was a Windfall

Just a few months ago, on the fifth floor of the courthouse in a sleepy Philadelphia suburb, an international manufacturing conglomerate squared off for 3½ days against a local sales rep. The battle was over commissions due under the terms of their contract, plus statutory damages. In a first for this counsel (and the seasoned trial judge), a single-sex jury was selected: eight women who, for reasons explained below, would later form a chat group known as the “Windfall Gals.”

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One of the Strongest Rep Decisions — Ever

One of the Strongest Rep Decisions — Ever

“They will be surprised to learn that, under the default rule the Court adopts today, an at-will salesperson is entitled to commissions for any sale – here, perhaps hundreds of thousands of sales – a jury determines the salesperson ‘set in motion.’ And they will be stunned to learn that, under the default rule, the entitlement to commissions may extend years after their employment relationship ended.”

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