For employees in commission-based roles, commission can make up a significant part of a worker’s income. That is why unpaid commissions can hit so hard financially. When an employer fails to pay commissions that a worker has rightfully earned, the worker does not have to simply absorb the loss.
California law protects workers who have not received commissions they earned. Employees have several options for recovering these unpaid wages under their employment agreements.
What to review when a commission is unpaid
California law requires employers to provide written agreements to employees who receive all or part of their compensation through commissions. Workers seeking unpaid commissions should consider:
- Understanding the commission agreement: The agreement explains how and when you earn commissions. It may set conditions such as completing a sale, receiving customer payment or meeting another requirement. These terms can help determine whether the employer failed to pay a commission you earned.
- Gathering supporting records: Collect supporting documentation like sales receipts, pay slips, commission calculations, employment contracts and emails regarding commission payments. These records serve a dual purpose , establishing the amount the employer owes and supporting a wage claim if the dispute continues.
Employees in California can file a claim when an employer fails to pay wages or overtime. They can also file claims for unpaid minimum wages and other benefits. The legal team will examine the case and most likely arrange a settlement conference. In case the issue is not resolved, then the case will go for hearing.
How to pursue an unpaid commission claim
Workers should check the applicable filing deadline because the time available to pursue unpaid wages can depend on the legal basis for the claim. Consulting an employment attorney may bring clarity and peace of mind knowing that unpaid commissions won’t go unclaimed.