44-342. Same; termination of contractual relationship; penalty and interest for nonpayment, when.
44-342
44-342. Same; termination of contractual relationship; penalty andinterest for nonpayment, when.(a) Subject to the provisions of subsection (d), whenever aprincipal discharges a commission salesperson orwhenever a commission salesperson quits or resigns, the principal shallpay, at the usual place of payment, the commission salesperson'scommissions earned through the last day of the contractual relationship notlater than 30 days after the last day of the contractual relationship or bymail postmarked within that period.
(b) If a principalknowingly fails to pay a commission salesperson any earned commission asrequired by subsection (a), such principal shall beliable therefor and shall be additionally liable for damages in thefixed amount of 1% of the unpaid earnedcommissions for each day,except Sunday and legal holidays, upon which such failure continuesafter the day upon which payment is required by subsection (a) or inan amount equal to the unpaid earned commissions, whichever isless. Forthe purpose of such additional damages, the failure to pay shall not bedeemed to continue after the date of the filing of a petition inbankruptcy with respect to the principal ifsuch principal is adjudicatedbankrupt upon such petition.
(c) If a principal fails to pay a commission salesperson any earnedcommission as required by subsection (a), such principal may be assessedinterest as provided under K.S.A. 16-201 and amendments thereto on suchcommissions from the date such commissions are required to be paid pursuantto subsection (a).
(d) Notwithstanding the provisions of subsection (a), if the terminatedor resigning commission salesperson wasentrusted with the collection, disbursement orhandling of money or property during the contractual relationship, suchperson has 10 days after thetermination of the contractual relationship to audit andadjust the accounts of such commission salesperson before the 30-dayperiod required for payment of commissions earned through the last day ofthe contractual relationship begins. In such cases, the penalty provided insubsection (b) shallapply only after the expiration of the 10-day audit period and the30-day period required under this subsection.
History: L. 1987, ch. 185, § 2; July 1.