Unpaid Commission Lawyer in New York City

When your employer fails to pay the commissions you have earned, it is more than a paycheck issue—it is a violation of your rights under New York labor law. Employees across New York City rely on commissions as a significant part of their income, and unpaid compensation can create immediate financial strain. Brown Kwon & Lam provides experienced, client-focused legal support to help you understand what you are owed and how to pursue it. Our team takes a results-driven approach, working diligently to recover unpaid commissions and hold employers accountable for unlawful practices. You can expect personalized attention, clear communication, and a strategy tailored to your specific situation. We believe every employee deserves fair treatment and full compensation for their work. Free consultations are available, and our services are available in English and Spanish.

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 a commission that is rightfully yours, Brown Kwon & Lam can help.

If your commissions are missing, delayed, or reduced, do not wait—submit our online form or call (212) 295-5828 now to have a dedicated unpaid commission lawyer review your case.

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 that 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.

In New York City, commission arrangements are common in industries such as finance, tech sales, fashion, and real estate, where a significant portion of income may come from commissions rather than base salary. This makes it especially important to understand whether your role is truly commission-based, how your commission is calculated, and when it is considered earned under your agreement. We regularly see disputes arise when an employer changes a commission plan mid-year, refuses to honor written promises, or relies on vague language that leaves employees unsure what they are owed. Taking time to review your plan before problems occur can help you avoid misunderstandings and put you in a stronger position if a disagreement develops.

Common Commission Disputes in New York

Many employees only realize there is a problem with their commissions when a large payment does not arrive, or a long-expected deal is treated differently than past transactions. In New York, common disputes include disagreements over when a commission is considered earned, whether commissions remain payable after termination, and how returns, cancellations, or chargebacks should affect payments. These issues can arise for sales staff in Manhattan offices, field representatives working across boroughs, or remote employees whose accounts are based in New York. Understanding the typical patterns we see can help you recognize whether your situation is part of a broader problem with how your employer handles commissions.

We frequently hear from workers whose employers suddenly change the commission structure without clear written notice, apply new quotas or conditions that were never part of the original plan, or retroactively reduce commission rates on closed business. Other disputes involve employers refusing to pay commissions on deals that closed shortly before or after an employee left the company, even when the employee did the bulk of the work. In some cases, employers classify payments as discretionary bonuses to avoid treating them as wages. By reviewing your pay history and plan language, an unpaid commission attorney can help determine whether what you are experiencing is a legitimate adjustment or an unlawful effort to avoid paying what you have earned.

Because these disputes are fact-specific, it is important to document every concern as it arises. Save screenshots of commission dashboards, copies of internal policies, and any written promises made by supervisors or human resources. If your employer operates in multiple states but you work or report to New York City, New York law may still apply to your commissions, including protections designed to address failure to pay commissions that are properly earned. Bringing a detailed, organized set of information to an unpaid commission attorney in New York City at our firm allows us to evaluate your options efficiently and give you candid feedback about the strength of your potential claims.

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 perform “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:

• A description of the calculations for an employee’s wages, salary, drawing accounts, commissions, and all other forms of payment;
• An explanation of how the employee will get their regular pay;
• How often reconciliation will occur (if applicable); and
• Any other relevant details of payment of wages, salary, drawing accounts, commissions, etc., when the employment ends.

While employers shouldn’t have issues paying New York employees, the reality is that issues still exist in the workplace. For many commissioned employees in New York City, the most important document in a dispute is the signed commission agreement. Courts and agencies will often start by asking whether an agreement exists, whether it is clear how commissions are earned, and whether the employer followed that written formula in practice. If your employer never provided a written agreement, or if what happens in practice does not match what is on paper, that can support claims involving unpaid commissions and other wage violations. When we review a potential case, we look at the agreement, any later emails or policy changes, and the commission statements you received to build a timeline of what was promised versus what was actually paid.

When Employers Fail to Pay Commission Earned

Though limited deductions may be taken from commissions earned under Section 193 of the Labor Law, commission-earning employees need 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 by choosing to seek a new position. However, the language within your contract determines how and if you earn commission.

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

• Draw against commissions: A draw against commissions is a payment of credit, in whole or in part, against future commissions. These typically function as an advantage. Draws are only reconcilable against future commissions; should an employee leave the company, he or she does not have to repay this. Recoupment is illegal unless explicitly included in the employment contract.
• Minimum wage and overtime: New York State minimum wage and overtime laws apply to commissioned salespersons; there is no exemption from minimum wage and overtime requirements for outside salespeople. This means that, yes, you do have to pay minimum wage to a commission employee. However, an employee can be both a commissioned salesperson and an outside salesperson, depending on the employment agreement.
• Bonus: Any money an employer gives to an employee at their own discretion is a bonus. Money given for job duties they perform is considered commission.

When we assess whether an employer in New York City has failed to pay commissions that were already earned, we look beyond a single paycheck or sales period. Patterns often emerge where an employer retroactively changes the rules to avoid paying on large deals, delays payment for months, or applies chargebacks for reasons that are not clearly allowed in the agreement. Commissioned employees may also see sudden deductions when they resign or are terminated, even though the law treats many post-termination commissions as wages that must still be paid. By comparing your historical payments, plan documents, and internal communications, an unpaid commission attorney can help identify where your employer’s conduct may have crossed the line into a violation of New York commission pay laws.

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. If you are considering bringing a claim in New York, it is important to act promptly because strict time limits apply to many wage and hour claims. Gathering documents such as your commission agreement, offer letter, pay stubs, commission statements, and any emails discussing your pay will give us a clearer picture of what happened and how to move forward. A qualified unpaid commission attorney from Brown Kwon & Lam can then explain your options, which may include negotiating directly with your employer, filing an administrative complaint, or pursuing a lawsuit seeking payment of unpaid commissions and related damages. Our goal is to help you choose a path that reflects your priorities, whether that is a faster resolution, a confidential outcome, or a more formal challenge to unlawful practices.

What To Do If Your Commission Is Not Paid

Realizing that a commission payment is missing or lower than expected can be stressful, especially if you rely on that income to cover rent or support your family in New York City. Taking careful, deliberate steps can help protect your position and avoid mistakes that might make it harder to recover what you are owed. Before reacting in the moment, it is helpful to pause, gather information, and approach the issue in a way that preserves both your rights and your professional relationships.

The first step is to carefully review your written commission agreement, offer letter, and any updates or policy documents your employer has issued. Compare the language in those documents to the way commissions have actually been calculated and paid over time. You can then raise questions in writing with your manager or payroll department, clearly but calmly pointing out the discrepancy and asking for an explanation. Keeping your communications factual and saving copies of every response will create a record that may be important if the situation is not resolved internally. If you work for an employer based in New York State but perform work across multiple locations, be sure to note where your accounts and supervisors are located, as that can affect which laws apply.

If your employer does not correct the problem or if the explanation you receive does not match the terms of your agreement, reaching out to an NYC unpaid commission lawyer can help you understand your next options. At Brown Kwon & Lam, we will review your documents, help you assess whether the issue is an isolated mistake or part of a broader pattern, and discuss potential avenues such as negotiation, administrative complaints, or litigation. Because we focus on clear, patient communication, we make sure you understand what each path involves before you decide how to proceed. Our goal is to support you through each step so that you do not feel alone while addressing a complex pay issue with your employer.

Failure to Pay Commissions in New York: 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. 

Contact Brown Kwon & Lam today to schedule a free consultation with a qualified NYC unpaid commission attorney as soon as possible.