Losing your job is hard enough without the added burden of knowing that you have unpaid commissions. Hopefully, your employer does the right thing and makes arrangement for you to receive these funds in a timely manner after your last day of work. Unfortunately, some employers recognize an employee’s right to these payments under California law, even if they were fired from their job.
Some of them may argue that there are no federal laws on commissions for employees who are terminated. This is true, but the state of California has clearly defined laws on this subject, along with guidelines on how long employers have to pay out these amounts.
What if I Didn’t Get my Commission after I Left my Job Voluntarily?
You are entitled to payment for sales commissions, even if you choose to leave your job voluntarily. Do not believe your employer if they say you forfeited your right to commission or bonuses because you resigned with little to no notice. California law still mandates the payment of commission or bonuses that were earned by the employee during the course of their employment. You also have the right to receive bonuses and commissions after you went on disability for a serious medical condition.
How Long Does My Employer have to Pay Me Commission after a Termination?
If you are laid off or quit your job with more than 72 hours’ notice, the commission you earned must be calculated and paid to you on the date of termination. If you voluntarily quit your job with less than 72 hours’ notice, your employer has 72 hours from the date of termination to pay any commissions. In the event you there are commissions still pending as of the termination date, your employer must pay that amount as soon as the issue is resolved.
Please note that your employer cannot postpone the payment until the next payday or the usual time for calculating commissions at the company. The laws require that commissions following termination of employment must be paid by a specific deadline.
Do I have a Case against My Former Employer if They Did Not Pay Me My Bonus after I was Let Go?
It may seem like you’re stuck without options when your employer holds certain payments hostage after you are no longer employed with them. However, the employment laws in California are very comprehensive, and the protections generally favor the employee over the employer.
According to California law, any form of employment that involves commissions must be established by a written contract. The contract must include terms for how commissions are calculated and when they are paid.
So, reading over your contract should be the first step if you are owed commission by your employer. Take note of specific terms about commissions after the end of employment, particularly any forfeiture clauses. Once you understand your rights per the contract between you and your employer, please take the steps listed below:
Gather all your documents
and records of sales, commissions received, and communications with your employer on the subject of commissions and other owed payments.
Send a formal, written request to your employer
to ask for the unpaid commission, and be sure to include documentation that proves you are owed these amounts.
File a wage violation claim
if your employer does not respond or refuses to honor your request. A wage and hours claim can be filed with the California Division of Labor Standards Enforcement (DLSE).
Contact a California employment lawyer
to talk about the possibility of filing a lawsuit.
Asserting your rights and planning out an effective legal strategy is crucial to receiving the payment you rightfully deserve. A labor law attorney at our office can take the time to answer your questions and formulate a plan for how to collect the commission that your employer is withholding from you.
What Happens after I File a Wage Claim?
Once you file the claim forms with the DSLE, the office will investigate your case and try to work out an agreement between you and your employer, which is normally done through a conference call. If a resolution cannot be achieved, a formal hearing will be scheduled, where both parties can present evidence and tell their side of the story.
If the hearing officer issues a ruling in your favor and your employer still refuses to issue payment, it’s time to seek help from an experienced wage violation lawsuit attorney.
Contact Our Law Firm
Sadly, it’s very common for employers to engage in retaliation by withholding commission and other payments after an employee is fired, laid off, or resigns from the company. This is unprofessional and petty, and even more importantly, it’s against the law.
Our employment rights lawyers are here to fight for you and the compensation you are entitled to. From the filing of a labor board complaint to a lawsuit for unpaid commission, you can count on us to be there every step of the way.
We require no payment upfront, as we represent all clients on contingency. That means all legal fees are collected from the employer as a part of your compensation award. In other words, there is no payment owed to us if we fail to recover your settlement.
California Labor Law Employment Attorneys Group is here for you 24 hours a day, 7 days a week. Contact us at your earliest convenience and schedule a free consultation to learn about your rights and legal options.
