Unpaid Commissions

COMMISSIONS

Commissions are wages that are based on a percentage of the price of a product or service sold.

UNLAW DEDUCTIONS FROM COMMISSIONS

Employers often shortchange commission earners by deducting business expenses from commissions. But California law prohibits these type of deductions. Unlawful business expense deductions typically include: cash shortages, breakages, loss of equipment, as well as returns for defective products, returns that cannot be traceable to the original salespersons, or returns of products purchased at another store.

UNPAID COMMISSIONS

Employers also generally cannot refuse to pay earned, but uncollected commissions when employees leave a company. And employers generally cannot refuse to pay earned commissions to employees who are on a “probationary” period (for example, no commissions paid until an employee has been with a company for six months).

MINIMUM WAGE OWED IF NO SALES

Most commission earners are entitled to minimum wage and overtime pay. If these employees fail to sell anything or earn commissions, they are still entitled to be paid minimum wage and overtime for the hours worked.

DAMAGES

If an employer fails to pay owed commissions to its employees, the employer may be required to pay significant damages, including the commissions owed, penalties, interest, and attorneys’ fees.

SEEK CONSULTATION

If you were not paid for all commissions earned, contact us for a free consultation.