Legal Question in Employment Law in California

I suggest you contact the California Dept. of Industrial Relations, Division of Labor Standards Enforcement to double check on this, but I believe they are only obligated to pay what is owed at the time. If deferred compensation is to be paid later, it is only due then, not at termination date. If I am wrong about that, the DLSE will not only be able to give you the correct answer, but also process an administrative action for you against the employer for unpaid wages and penalties, which is much quicker and easier than suing for it.

The general rule is that commissions must be paid upon the time of discharge, so long as they are fully earned and calculable. Thus, if the only reason for the delay in payment is based on the fact that fully-earned commissions are not paid until the end of the quarter, the employer is in violation of the Labor Code for not paying those commissions at the time of discharge. The remedy for the penalty would be either in small claims court or before the Labor Commission.

If this is a systemic error by the employer, there may be remedies under a statute known by the acronym of PAGA. While you may well be able to handle a claim before the Labor Commission without counsel, you would almost certainly require an attorney's help with a PAGA claim.