Legal Question in Employment Law in California
Paying Commissions Late
I am an outside sales rep. that works for salary plus commissions. My company has postponed the payment of my commission twice this month. The first time was because they couldn't get the commissions figured out in time and the second was because they are trying to figure out if the sales reps owe money to them.
I signed a commission plan that the company countersigned that specifically states that all commissions are paid in the month following the month earned and commissions will be paid in the last payroll cycle for each month. The commission will now be paid the following month and 2 weeks late, not with the payroll cycle of the correct month.
Is my company breaking the law? Thanks for your help
2 Answers from Attorneys
Re: Paying Commissions Late
There is a violation of the law. But as a practical matter if you are still employed, the damages will be minimal and the reaction of the employer may make continued employment difficult. If you have separated from the company, waiting time penalties may make a claim viable depending on the amount you are owed.
If you have any further questions, feel free to contact me.
Re: Paying Commissions Late
Anyone not paid can file a claim of unpaid compensation with the Labor Commissioner, seeking the money owed, plus penalty of up to one month pay, plus interest. Consider the potential consequence of becoming a 'trouble maker' before doing so. If they do retaliate against you, then you have new rights and claims --call me if that happens.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
