What if My Employer Is Not Paying Me for My Sales Commissions?

You expect payment when you work hard for your employer and earn a commission. However, sometimes employers fail to pay earned commissions to their salespeople. You deserve your payment according to the terms of your commission agreement. You have legal rights to pursue your unpaid wages if your commissions go unpaid.

If you have questions about how to get your sales commission from your employer, talk to an employment lawyer. Wage and hour regulations can depend on state law. To understand your rights to receive unpaid sales commissions, talk to a wage and hour law attorney.

Recognizing Unpaid Sales Commissions

Your commissions likely involve a certain percentage of sales or the actual number of sales you make. Your written contract determines the amount of commission you, as a commissioned employee, receive.

In many cases, it is unlawful for your employer to withhold earned commissions, but the specifics can depend on the terms of your commission agreement and state laws. If your employer breaches the employment contract with you, knowing how much your employer owes you may be challenging.

However, it should be easy to determine whether you are missing a payment of wages for your commissions. If you receive no payment above your base salary and have proof you earned commissions, then you have unpaid commissions. If you have trouble analyzing your employment contract to calculate the amount of commission your employer owes, contact an employment lawyer.

Addressing the Issue with Your Employer

When you recognize that you have unpaid commissions, list the transactions or sales for which you’re missing a commission payment. The more documentation you have to support your claimed missing payment, the better.

Contact your employer with the documentation and explain the situation. The missing payday may have been an oversight or mistake. While communicating with your employer, it’s best to maintain a professional tone. Any communication may be eventually used in court.

If addressing the issue with your employer is unsuccessful in resolving the problem, you may need to take legal action for breach of contract. An employment lawyer can help you with your employment law claim under the employment agreement.

Legal Steps To Recover Unpaid Commissions

State and federal laws govern unpaid commissions. Depending on your situation, you may need legal assistance from an employment lawyer to help:

• Review the written agreement with your employer
• Gather evidence that demonstrates unpaid commissions
• Communicate with the employer on your behalf
• File a legal claim for you
• Represent you in settlement negotiations or at trial

You may need to file a complaint with your state’s department of labor or the Wage and Hour Division of the U.S. Department of Labor. The Fair Labor Standards Act ensures the timely payment of wages, which can include commissions if they affect minimum wage or overtime calculations. You have legal rights to your commissions.

Understanding Your Rights in Commission Disputes

If your employer has denied or withholds your commissions, you have rights. Commission disputes arise under circumstances, such as the following:

• Unfair or unclear commission structures: When commission structures are so vague, they can lead to misunderstandings between employees and employers.
• Allegations that your performance failed to meet requirements: Your employer may argue that you did not meet certain sales targets or conditions, impacting your eligibility for commissions.
• Employment termination: When your employer terminates you, some employers may try to withhold commission payments for commissions earned before departure.

Employment laws exist to protect employees from unfair practices. An employment attorney can help provide the legal advice you need.

Preventing Future Commission Payment Issues

Preventing future commission issues will make your life easier. Before taking a job that involves commission payments, research the company. Speak with current employees and past employees when possible.

Do research online to determine whether you find a pattern of complaints against the employer. Although employees have legal rights to commission payments, most would rather avoid a commission dispute with their employer.

Having a clear understanding of your right to commission payments is critical. This will position you to gather the evidence needed to make your case to your employer about your missing commissions. Do not sign a commission agreement until you thoroughly understand how the agreement works. This will help you avoid commission payment issues in the future.

Contact a Lawyer To Help Obtain Unpaid Sales Commissions

Never let unpaid commissions impact your financial well-being. Speak with a wage and hour law attorney. They will likely provide a free initial consultation about non-payment of sales commissions. Your employer may have to pay your attorney’s fees for bringing the labor law claim. Get help today.