Location: Denver, Colorado
I was recently laid off from a SaaS company based in Denver, Colorado where I worked as an Enterprise AE. I had a large deal (~$30,000 commission) that was days away from final yes/no and then the only thing left was going back and forth with our legal teams on MSA/SOW. The client had already gone through a RFI/RFP, seen a three hour demo and hour technical/security call. Per their RFP, the next step was to decide a final vendor in the next few days.
Then, out of nowhere, I was laid off — no performance issues, no write-ups, no PIP, nothing. I asked why I was chosen, and they said it was due to “restructuring” and wanting to “go lean.” On the termination call, they told me commissions would only be paid on deals signed before July 15. That “cutoff” wasn’t in my signed comp plan, and I have a full recording of that conversation.
My comp plan says commission is earned when the MSA/SOW are signed and the deal meets term criteria. It also says I must be employed at the time the contract is signed — which I know complicates things. But I have evidence showing the deal was essentially sold, and I was let go right before that final step. The client is still active and likely to sign soon.
They offered me a severance payment (~$5.7K) that includes a general release of claims. I haven’t signed it yet and have until July 14 to decide. If I sign, I’ll lose my ability to pursue the commission.
My questions:
- Do I have a case under the Colorado Wage Act or other law that protects earned commissions?
- Does the timing and potential bad faith override the “must be employed at signature” clause?
- Is it worth giving up guaranteed severance to pursue the commission?
I’m working on contacting lawyers, but I’d appreciate any insights or experiences from this community — especially if you’ve seen commission disputes like this before.
Thanks.