Are you a California employee who has not received commissions that you earned from your job? Commission refers to money that is earned for selling a service or product, or for the completion of specific job-related tasks. Commission may be paid in place of a hourly wage or salary, or in addition to a salary, under a structure known as “salary plus commission.”
Unfortunately, the commission pay system is often abused by employers, meaning that employees are cheated out of their earnings or fail to receive the full commissions they earned. Failure to pay commissions is against the law, and there are legal protections in place for those who were denied payment.
Is your employer refusing to pay you the commissions that you are owed? Do you believe that your employer has been failing to pay all or a portion of your commissions? If so, you might be interested in taking action against your employer and recovering the commissions that you rightfully earned.
Challenges for People that Work on Commission
Fighting for the commission you are owed can be very challenging, and legal advice from a California employment lawyer is highly recommended. It’s an unfortunate reality that employees are the ones at a disadvantage when it comes to working on a commission basis. Essentially, employers use the system to maximize profits while cheating workers out of what is rightfully theirs, especially on large commission payments for employees that go above and beyond.
Another issue that hurts employees is the lack of a specific formula for the amount of commission that has to be paid. So, commissions are based on contractual agreements between the employer and employee, and whatever the two sides agree on is what will hold up in court. This is very different than payment of overtime wages, which is governed by specific rates that cannot be overridden by an employment contract.
These are just some of the concerns that can make things difficult if you an employee who is owed commissions by your employer. The legal team of California Labor Law Employment Attorneys Group is here for you 24/7, so don’t hesitate to contact us for advice and guidance.
What are My Rights if I Get Paid on Commission?
It’s important to note that even if commissions are your only form of payment from a job, these are still considered wages under California law. Thus, you have a right to file a wage violation claim for unpaid commissions from your employer.
California labor laws also have standards on how and when commissions are paid, such as:
- Employers must pay commissions to qualifying employees at least twice a month.
- The payment must be made within the first pay period after the employee earned the commission (unless the employer does not have reasonable time to calculate the amount that is due).
- All commissions must be paid to the employee immediately upon termination of employment.
- If the employee resigns, any commissions they earned must be paid on the date of termination as long as the employer was given 72 hours-notice. In cases of less than 72 hours-notice, payment must be issued within 72 hours of the termination date.
If you are owed commissions from a job, make sure to send your employer a formal, written notice (email or physical letter) to ask for the amount you are owed, and proof how the payment was calculated. If you are continually deprived of your rightful wages, we can help you file a complaint with the California labor board.
Filing an Unpaid Commissions Complaint
Failure by your employer to resolve the matter regarding your unpaid commissions requires further action. For example, you can file an unpaid wage claim with the
California Division of Labor Standards Enforcement (DLSE). Here are the basic steps that are involved:
- Prepare evidence and documentation of the unpaid commissions
- Obtain the claim forms, fill them out, and attach all relevant documentation
- File the claim with your local DLSE office
- Attend the settlement conference at the scheduled date and time
- Wait for the results of the hearing and review the board’s decision
- If necessary, file the required paperwork to appeal the decision
Keep in mind that a government complaint is not the only option for those who were denied commissions from a current or former job. An employment rights attorney can also help you with a lawsuit against your employer.
Compensation from a Civil Lawsuit
An unpaid commission lawsuit may be the way to go when you are owed a significant amount of money from your employer. A civil lawsuit is very complicated, so it’s in your best interest to retain legal representation right from the start. Aside from contacting an experienced labor law attorney, make sure to:
- Gather any and all documents pertaining to the commission agreement between you and your employer
- Collect all communications and documents related to the amount of money you are owed, like records of completed sales and transactions, emails from your payroll department, pay stubs, and bank statements.
Not paying commissions that are guaranteed through an agreement is against the law, and you as the victim have the right to file a legal action and demand what you have rightfully earned. Suing your employer isn’t just about the money; it’s about holding them accountable and sending the message that such conduct will not be tolerated.
Contact an Unpaid Commission Wage Claim Attorney
Unpaid commission is a common type of wage theft in many California workplaces, but employees have rights under the law, which we are happy to discuss with you during free consultation.
In the event you are interested in filing a claim or lawsuit, we agree to represent you on contingency and wait to receive a percentage of your settlement in legal fees. That way, you don’t have to worry about how you will pay for an unpaid wages lawsuit attorney. And if we don’t recover the compensation you are entitled to, there is a Zero Fee Guarantee to ensure that you owe us nothing.
We look forward to hearing from you and bringing about a just and fair resolution to your case
