What can you do if your employer refuses to pay your commission?

On Behalf of | Aug 11, 2020 | Blog |

As a commission-paid employee, you may not receive an hourly wage like some other workers. Rather, you may receive sales commissions for the completion of tasks, such as getting a percentage of the income from a sale or sales that you made. Should your employer fail to pay your commission, or neglect to do so in a timely manner, you may have legal recourse. 

According to state law, you should receive your sales commissions in accordance with the contract you signed with your employer or the principal that hired you to perform your work. If your contract does not specify when your commission comes due, then you should receive payments in accordance with the past practices established between you and the principal. 

Taking legal action

Should the principal fail to comply with state law regarding the payment of your sales commissions, you may choose to take legal action in order to recover the compensation you earned and deserve. You may also take legal action to compel the principal to pay if you do not receive your commission within 45 days of the termination of the contract between you and the principal. 

Receiving compensation

If the court finds in your favor, you may receive compensation for various damages resulting from the principal’s nonpayment. These may include the commission due, any actual damages resulting from the nonpayment, court costs and reasonable attorney’s fees. In cases when the principal intentionally failed to pay your commission, the court may see fit to award you the lesser amount of $100,000 or two times the amount of the owed commission.