Instructions for Completing
The Commission Agreement
Due to recent changes to the New York Labor Law along with recent court decisions, GNYADA’s Employee
Rela)ons Plan is providing you with one example of a wri*en Commission Pay Plan Agreement. GNYADA
recommends very strongly that all dealers use such wri*en agreements for every commissioned employee.
Commission agreements must be in wri)ng and they must be signed by both the employee and the employer.
GNYADA recommends that dealers retain fully completed Commission Agreements for at least six (6) years
aer the employee’s employment has ended. Be sure to prepare and execute a new agreement if you change
the commission arrangement of one of your employees.
A Commission Agreement must contain all of the terms and condi)ons of employment, including, but not lim-
ited to, the following terms:
• Descrip)on of how wages, salary, draw on commissions, commissions and all other amounts earned
are to be calculated;
• Frequency of reconcilia)on between draw and earned commissions, where the wri*en agreement
provides for a recoverable draw; and
• Details relevant to payment of wages, salary, draw, commissions and all other monies earned and
payable in the case of termina)on of employment by either the employee or employer.
A few reminders about Commissions Agreements:
• If there is no wri*en agreement, signed by both the employee and employer, the courts will presume
that the employee’s descrip)on of the commission agreement is accurate.
• If there is no signed commission agreement, the employee is en)tled to payment according to the
terms the employee claims are in existence at that )me.
• Dealers should not permit employees who have not signed a commission agreement to work at the
dealership. If an employee s)ll refuses to sign an agreement, it would be permissible to terminate
The included Sample Commission Agreement is provided to you only as one sample format of a Commission
Agreement. We recommend that dealers are thorough in their compleon of any Commission Agreement be-
tween the dealer and commissioned employees.