Code of Alabama

Ala. Code § 8-24-2 (2026)

When Commission Is Due; Payment.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) The terms of the contract between the principal and sales representative shall determine when a commission is due.

(b) If the time when the commission is due cannot be determined by a contract between the principal and sales representative, the past practices between the parties shall control, or if there are no past practices, the custom and usage prevalent in this state for the business that is the subject of the relationship between the parties shall control.

(c) All commissions that are due at the time of termination of a contract between a sales representative and principal shall be paid within thirty days after the date of termination. Commissions that become due after the termination date shall be paid within thirty days after the date on which the commissions become due.

(Acts 1985, No. 85-543, p. 782, §2; Acts 1994, No. 94-686, p. 1319, §1.)

Notes of Decisions
Cited in 5 cases, 1997–2008 · leading case: Ishler v. Comm'r, 442 F. Supp. 2d 1189 (N.D. Ala. 2006).
Ishler v. Comm'r, 442 F. Supp. 2d 1189 (N.D. Ala. 2006). · cites it 4× “Ala.Code § 8-24-2 (1975). The damages provision of the Act states that “[a] principal who fails to pay a commission as required by Section 8-24-2 is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus…”
Lindy Mfg. Co. v. Twentieth Century Mktg., Inc., 706 So. 2d 1169 (Ala. 1997). · cites it 6× “However, as Twentieth Century points out, the Code commissioner's note to § 8-24-2 points out that § 2 of the 1994 act that amended the statute provided that the act "is cumulative to any other law providing any remedy for the recovery of commissions owed to a sales…”
Harris Corp. v. Giesting & Assocs., 297 F.3d 1270 (11th Cir. 2002). “Unlike cases in which punitive damages are based on malice, wantonness,. fraud, gross negligence, or oppressiveness, here the statutes specifically deal with contracts and commissions, and clearly delineate the type of damages and attorney’s fees allowed, and under what…”
Clanton v. Tahsin Indus. Corp., U.S.A., 4 So. 3d 1121 (Ala. 2008). · cites it 2× “Section 8-24-3 provides: “A principal who fails to pay a commission as required by Section 8-24-2[ 1 ] is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus reasonable attorney’s fees and court costs.”
Ex Parte Tahsin Indus. Corp., USA, 4 So. 3d 1121 (Ala. 2008). · cites it 2× “Section 8-24-3 provides: "A principal who fails to pay a commission as required by Section 8-24-2[ [1] ] is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus reasonable attorney's fees and court costs.”
— Ala. Code § 8-24-2(a) — 2 cases
Clanton v. Tahsin Indus. Corp., U.S.A., 4 So. 3d 1121 (Ala. 2008). “Section 8-24-3 provides: “A principal who fails to pay a commission as required by Section 8-24-2[ 1 ] is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus reasonable attorney’s fees and court costs.”
Ex Parte Tahsin Indus. Corp., USA, 4 So. 3d 1121 (Ala. 2008). “Section 8-24-3 provides: "A principal who fails to pay a commission as required by Section 8-24-2[ [1] ] is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus reasonable attorney's fees and court costs.”
— Ala. Code § 8-24-2(c) — 1 case
Lindy Mfg. Co. v. Twentieth Century Mktg., Inc., 706 So. 2d 1169 (Ala. 1997). “However, as Twentieth Century points out, the Code commissioner's note to § 8-24-2 points out that § 2 of the 1994 act that amended the statute provided that the act "is cumulative to any other law providing any remedy for the recovery of commissions owed to a sales…”
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