Failure to Pay Commissions

Contact BKL Today for a Consultation

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    As New York wage and hour violation attorneys, we know how detrimental it can be for an employee when an employer fails to pay commission. If you believe you have been cheated out of commission that is rightfully yours, Brown Kwon & Lam can help.

    What is a Commission?

    The Muse defines commission as “additional compensation that’s earned based on job performance.” Often, a commission-based role is created via an employment contract which includes the terms dictating how you will be paid a set amount of money, often dependent on hitting employment goals such as the amount of product sold, clients booked, etc. Your employer should be paying you this commission monthly, quarterly, or yearly.

    What New York laws exist defining requirements for commissions paid?

    New York State Labor Law Article 6 establishes the requirements for the payment of wages to commission-earning employees. Under the law, commission employees are “principal activities”  that include any sales the employer pays in whole or in part on a commission basis rather than a salary or wage basis. Supervisory, managerial, executive, or administrative roles are not included in this Labor Law.

    Labor Law requires that all agreements of payment be in writing and signed by both the employee and employer. The written agreement must include:

    While employers shouldn’t have issues paying New York employees, the reality is that issues still exist in the workplace.

    When Employers Fail to Pay Commission Earned

    Though limited deductions may be taken from commissions earned under Section 193 of the Labor Law, it is important for commission-earning employees to pay close attention to the details of their employment contract to ensure that they are not being subjected to deductions that they should not be.

    Remember, any commissions earned by you must be given to you, even if the employment relationship ended via termination or choosing to seek a new position. However, the language within your contract determines how and if you earned commission.

    In addition, there are other forms of commission withholding that you need to be mindful of:

    What happens if my employer does not pay me my money?

    If your employer fails to pay you your money or follow the regulations set forth under Section 191-C, Payment of sales commission, the employer is liable in a civil action for double the damages incurred. You may also be able to recover reasonable attorney’s fees, court costs, and disbursements.

    These cases can be difficult, but that doesn’t mean your rightfully earned commission should stay in the hands of your employer.

    Failure to Pay Commissions: Brown Kwon & Lam

    If you are or were a commissioned employee for an employer in New York State, you have a right to your money earned for sales. If you believe you have a claim, contact the attorneys of Brown Kwon & Lam today. We will review your contract and bring about a lawsuit for unpaid wages. Call Brown Kwon & Lam today.

    Related News & Insights

    Call Now
    Email Now
    Back to Top