What Is a Commission Failure to Pay?

A commission failure to pay occurs when an employer refuses to pay commissions an employee has earned under a commission agreement. Under California law, earned commissions are considered wages. Once the conditions required to earn the commission are satisfied, an employer generally cannot withhold, reduce, delay, or refuse payment without a lawful basis.

At Employment Rights Lawyers, APC, our team of attorneys helps employees determine whether their employer’s conduct violates California wage-and-hour laws. We can review your commission agreements, compensation records, and workplace practices to identify potential violations and pursue the compensation you may be owed while protecting your rights.

Types of Commission Pay in California

Commission pay is compensation earned based on sales made, services sold, or other measurable business generated by an employee. Under California law, commissions are considered wages once earned under a valid commission agreement. Employers generally cannot withhold earned commissions simply because they choose not to pay them. The rules depend on whether the employees are classified as inside salespeople or outside salespeople.

Inside Commission Pay

Inside commission pay applies to employees who work primarily at their employer’s place of business and earn compensation based on sales. In California, non-exempt inside sales employees are typically entitled to minimum wage, earned commissions, overtime pay, meal periods, and rest breaks. Certain inside sales employees may qualify for exemptions under California wage orders if specific legal requirements are met, including compensation thresholds and job-duty requirements.

Outside Commission Pay

Outside commission pay applies to employees who spend more than half of their working time away from their employer’s place of business selling products or services or the use of services. Outside salespeople are often exempt from many California wage-and-hour requirements, including overtime rules. However, employers may still be required to reimburse necessary business expenses, such as mileage, cell phone usage, travel costs, and other work-related expenditures incurred while performing their duties.

Why Choose Employment Rights Lawyers, APC, for Your Commission Failure-to-Pay Case?

When your employer refuses to pay commissions, you deserve attorneys who understand California wage-and-hour laws. At Employment Rights Lawyers, APC, our team ensures you maintain direct access to employment attorneys throughout your case. We evaluate the facts of your case, explain your legal options, and pursue the best possible outcome while treating you with the dignity, respect, and compassion you deserve.

Do You Have a Viable Commission Failure-to-Pay Claim? Or Is It Just Unfair?

Not every dispute over commissions violates California law. The key question is whether your employer failed to pay commissions that were legally earned under the terms of your compensation agreement.

FAQ

What Can I Do if I’m Being Denied Commission Pay?

If your employer is refusing to pay commissions you believe you have already earned, start by gathering documents that explain how your commissions are calculated. This may include commission agreement, pay stubs, sales records, emails, performance reports, and communications about compensation. Keep detailed records of the sales or transactions that generated the disputed commissions. Understanding when and how commissions are earned under your agreement is often the first step in determining whether your rights have been violated.

Our experienced employment attorney can review your compensation structure, evaluate whether the commissions were legally earned, and determine whether California wage laws may have been violated. At Employment Rights Lawyers, APC, our team can assess your situation, explain your options, and help you pursue the compensation you may be owed.

Contact Us for a Free
(And Confidential) Consultation

If you believe your employer has denied commissions you rightfully earned, contact Employment Rights Lawyers, APC, for a free and confidential case review. Our team of attorneys can evaluate your situation, explain your options, and help you determine whether your rights may have been violated.

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